A NSW broker has urged fellow brokers not to "take our eye off the ball" in the scramble for diversification.
Rob Horner, founder of Jack Horner Financial Solutions in Baulkham Hills, has told fellow Connective brokers should be wary of trying to expand beyond their expertise. Horner urged brokers to "stick to what we do best" rather than eyeing the one-stop shop model of broking.
"A few years ago I was persuaded that because of the natural synergy between what a broker does and what a financial advisor does, that should mean that I should become a financial advisor as well, which I did. Not so long ago, I threw in the towel and stopped being an advisor, because I think trying to be all things to all people is just too hard," he said.
Horner commented that the rigours of NCCP compliance mean that it has become more difficult for brokers to diversify outside of their main business.
"It's hard enough to be a broker these days with the compliance requirements and the knowledge requirements, so when you have the added layer of compliance and knowledge you need to be a financial advisor, I thought I was going to have a nervous breakdown. So I think the importance of sticking to what we do best is very important, and I think the benefits in my business have shown that to be true," he said.
Rather than adopting a full financial services model, Horner advised focusing on referral relationships.
"Of course I didn't just leave my clients in the lurch as far as risk goes, but putting in place sensible partnerships to outsource that function I think is important," he said.
"We're all told diversification is the future, but I think the more we try to be all things to all people, the more we take our eye off the ball of what we're really good at," Horner added.