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Aggregator continues expansion drive with stake in financial planner

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Australian Broker | 04 Jul 2014, 07:31 AM Agree 0
An aggregator has continued its expansion path by snapping up a major stake in a leading finacial planner
  • Coast Broker | 04 Jul 2014, 10:26 AM Agree 0
    Sounds like another Firstfolio.
  • Alex | 04 Jul 2014, 11:48 AM Agree 0
    I am concerned that so many corporate executives believe that a mortgage broker can also be a financial planner. I don’t doubt that a few do have the qualities to do so successfully BUT so many don’t and to be as short-sighted as to state that brokers can be trained to qualify to provide financial advice solutions as if it is so easy and as a matter of fact confirms that those making these corporate decisions to integrate financial planning and mortgage brokering business in this way are inept!
    ASIC if you thought CBA, Storm financial et al was a problem then this new endeavour is a catastrophe being watered as I type (note the seed has already been planted). The outcome will not be limited to one firm or a group of people rather it will be widespread across all types of clients and business across Australia.
    If a professional wants to be a licenced Mortgage Broker as well as a Financial Planner so be it but their compliance MUST be of the highest order. They should not be allowed to claim CPD points for activities completed as a financial planner on their mortgage broker records. ASIC and their aggregator and dealer group must insure more stringent compliance requirements and documentation. Dealer groups and aggregators should employ people that understand BOTH businesses if their members are to act as both mortgage brokers and financial planners.
  • Finance Guy | 04 Jul 2014, 02:02 PM Agree 0
    Sounds like an interesting concept, I'd like to see how comm splits work. I also wonder what calibre of brokers and planners this model attracts.

    The nature of my work has introduced me to hundreds of financial planners and mortgage brokers over the past 15 years. Maybe I'm attracting the wrong sort, but, in my opinion, most of them would not be interested in such a structure because.... there is no added value to them.

    Most successful members from either discipline, already have referral agreements in place, and are already receiving income from making these referrals, while some have 'exclusive arrangements' others have multiple referral partners.

    I have met some who are qualified and practicing as bother planners and brokers, but most prefer to focus on what they do best, rather try and be a one stop shop.

    In my opinion, members from both sides, would prefer an aggregator/AFSL who gives them more freedom, and better splits.

    Planners and brokers are all in business for the same reason, to make money, and a structure like this may put limitations on their ability to do so, and cause an impasse in signing on successful members of either community.

    I could be wrong, but I am assuming that this structure involves Finsure and Specturm having 'exclusive' agreements with each other, and this is a serious limitation. Imagine being unable to form what could be a very lucrative referral agreement, because the planner is from the wrong AFSL, or the Broker is from the wrong ACL.... It's like being forbidden from seeing the girl of your dreams, because she supports a different AFL team

    I understand that if we want to get to the Emerald City, then we have to follow the yellow brick road down the path to new ventures. I'd definitely like to see how this pans out.

    Finance Guy
  • jeff | 06 Jul 2014, 11:32 PM Agree 0
    g-o-o-d l-u-c-k. History shows it'll probably be good for Jon but no doubt not so much for his team..
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