“When you look at financial planning, there are two levels of financial planning education: There’s RG146, which allows you to sell life, risk and comment on super and then you’ve got the full financial planning diploma which allows you to do estate planning, equities investments, derivatives – I don’t think brokers want to get into that space anyway.”
For a broker to get educated to the correct level, he says, would mean getting their RG146,“and that’s only a year’s education. That’s not much more than what they have to do to get their diploma for mortgage lending.”
Brown says ‘smarter’ brokers are already doing 75-80% of a statement of advice once they’ve completed a loan application anyway.
“The other 25% for a statement of advice is about the client’s risk appetite and also understanding what their current coverages are in terms of life, risk and super and I think most brokers are doing that.”
“In [response] to Max’s comments, I actually think it’s the other way. I think it really should come from brokers into financial planning, because I think [brokers] are better suited and better qualified to take up that role that [financial planners] have been ignoring for the last decade, which is just making sure customers have the right coverage on their assets and liabilities.”