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CPA's push into broking will threaten the channel

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Australian Broker | 22 Jul 2015, 08:33 AM Agree 0
CPA Australia's planned move into mortgage broking is going to threaten traditional accountant/broker relationships and referral sources, according to one broker and digital marketing expert
  • John | 22 Jul 2015, 08:51 AM Agree 0
    Let them go for it!!!!!!!!!!!!
    There are not that many accountants out there who could market themselves?

    I can't wait.
  • Paul Gollan | 22 Jul 2015, 08:57 AM Agree 0
    This all points to increased market share for brokers in my view. Real Estate groups start this push 20 years, planning dealer groups were next. This play by the CPA presents an opportunity for brokers rather than a threat. Broking, planning & accounting will continue to converge at a rapid place and there will be opportunities for generalists and specialists alike.
  • Patrick | 22 Jul 2015, 09:01 AM Agree 0
    In my view the commission rebate will refund less than half what an accountant will seek to charge on a time in attendance basis. Consumers will continue to patronise the "free" service brokers offer.
  • BJ | 22 Jul 2015, 09:17 AM Agree 0
    Competition has rarely diminished market share and Paul is correct.
    A natural synergy exists and brokers will find that the move will create opportunity.
    John, accountants are marketing themselves well, hence the growing market share in financial services. Embrace the opportunity.
  • Coast Broker | 22 Jul 2015, 09:18 AM Agree 0
    Been tried before by some accountancy groups and failed. Also there was an Aggregator called Lawfund who had not only solicitors that were members but also Accountants and Financial Planners and they were serviced by Brokers. Personal Experience was that Leads were thin anyway and most of the time it was non conforming Lending to see Tax Debts cleared.
  • Desiree Pasic, Bee Finance Savvy | 22 Jul 2015, 09:49 AM Agree 0
    Finance broking is a full time job, in that, to cover a large product range and stay up to date with lender policies that can change weekly, a large amount of time must be dedicated. This includes reading lender updates, maintaining relationships with Bdms and following up with credit to ensure the customer experience is as seamless as possible. It is rarely a case, in my experience, of ticking and flicking an application. Challenging customer scenarios will always continue to be sent through to dedicated brokers.
  • JH Broker | 22 Jul 2015, 10:35 AM Agree 0
    Many accountants have tried the path of mortgage broking to diversify their income, until they realise the amount of time each and every deal takes, CPD, Compliance, lender offerings, increased insurances, association fees, COSL etc ....... they soon revert back to the referral model.
  • Dan - Melbourne | 22 Jul 2015, 10:39 AM Agree 0
    HAHAHA @ John! Classic!! Starting up as a Broker, you have to remember you're also in Sales - you MUST have personality. Accountants have ZERO! Go for it kiddies.....
  • Rocket Scientist | 22 Jul 2015, 10:54 AM Agree 0
    Such a non event it's not worth discussing... Pretty sure this article is more about Darren Moffatt promoting his online wares rather than CPA branching off into something that is not their core business.
  • Broker | 22 Jul 2015, 10:58 AM Agree 0
    Being a professional Finance Broker requires a lot of (often extremely frustrating and time consuming / time wasting follow up) so any Accountant considering becoming a Broker had better not charge for their time by the minute!. 20 minutes on hold here, 30 minutes on hold there, ordinary software to navigate, then add compliance, red tape, more red tape, clawbacks, etc etc

    Furthermore, professional Finance Brokers are all too often spoken about as lo-hanging, uneducated, unprofessional and biased self-serving, money-hungry dishonest rogues – so why would any Accountant with such an esteemed position in society want to associate themselves with this element of society?

    The mind boggles!!
  • Broker Chris | 22 Jul 2015, 12:15 PM Agree 0
    What a waste of time. We work with a very large number of Accountants and the driver for the relationship has never been based on Money, they refer for quality service knowing that their clients are being advised properly and understand the opportunity cost of their time. The accountants within CPA are governed by APES 230 and if the driver is diversified revenue, a fee for service model is going to struggle to provide the outcome for the clients and the accountant.
  • Darren Moffatt | 22 Jul 2015, 12:31 PM Agree 0
    Hi everyone and thanks Rocket Scientist, top o' the morning to you!
    Make no mistake this is happening - see link on CPA website:

    This covers 'mortgage advice' as well & they confirm elsewhere they have obtained a credit license through which CPA accountant members will lodge loans. For most consumers, accountants are THE most trusted financial adviser. If the CPA execute this well and make it easy for accountants to write or refer deals through them -for more money that what they currently get from broker referrals - then this will def have an impact. To say it won't is naive. I'm making the point in the interview that if you rely on accountants then the smart thing to do in the face of this threat would be to hedge your risk, and an online 'direct to consumer' play is probably the best/cheapest way to do it.
  • Dan | 22 Jul 2015, 12:48 PM Agree 0
    @ David Moffet - not sure anyone is saying that 'it won't happen', it's a matter of 'will it work'. Perhaps a crash course in 'improving your personality' to better your customer relations would improve your success. You don't stand a chance. With your workload already - taking this on will be HUGE! It's a non event, but hey - you can dream!
  • QEDRisk | 22 Jul 2015, 02:32 PM Agree 0
    Interesting that the CPA press release:
    1. Doesn't mention mortgage broking
    2. Goes on about "financial advice", which is not mortgage broking
    3. Says it's all going to be fee-for-service. Good luck with that meeting accountant's expectations - in reflection of what others here have said today
    4. IN THE PRESENCE OF THE ASIC CHAIRMAN talks about "securing" its ACL, as if it's a fait accompli!!

    Knock yourselves out CPAs!
  • BJ | 22 Jul 2015, 02:53 PM Agree 0
    Well, once again such enlightened debate from the home loan sales trench.
    The trench mentality on this forum needs a shake up.
    Please can some informed broker, articulate precisely their concern re CPA's entry into home loan sales (far from the most sophisticated financial product on the planet) and stop with the "the sky is falling" argument.
  • QEDRisk | 22 Jul 2015, 02:58 PM Agree 0
    Don't know BJ - seems most of the comments below are saying "go for it, good luck"
  • Papery | 22 Jul 2015, 03:13 PM Agree 0
    I dont see this as any major threat either. Accountants like FP will need to cover Conflict of Interest & Fee disclosure & all the usual compliance obligations we are subject to. Wont take them long to realise that the referral model is more cost effective...unless they want to start embedding Brokers in their businesses.
    We all know theres almost no such thing a a straight forward deal any more.
    But you know what they say...Jack of all trades master of none..

    The majority of the public are not very sophisticated & cant understand their own tax returns...many Accountants dont give advice, they just submit the information they are provided & get the client to sign the usual 'all care but no responsibiilty' statement....cant wait to see how Accountants get round the old Fact Find & verifying the clients personal expenditure & financial position, not to mention financial goals...even under LoDoc conditions!
  • Don | 22 Jul 2015, 03:45 PM Agree 0
    Agree with you Broker.
    A current first home owner loan I'm doing has not settled yet and I have already made 87 contacts with clients, solicitor, agent, lender. Can't see any accountant charging FFS for that!
  • Don | 23 Jul 2015, 11:44 AM Agree 0
    The main objective of establishing industry related professional associations or regulatory council is to promote best industry practices and maintain the ethical behavior of its membership. This move is opening doors for manipulation. Just having a professional qualification doesn’t imply that person has the capacity/capabilities to practice in every industry. It is important to understand the major consequences of this move and impact to the industry…. I am very anxious to see what lenders would like to say about this move….
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