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'Do your homework', warns diversified broker

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Australian Broker | 11 Oct 2013, 08:00 AM Agree 0
A South Australian mortgage broker/financial planner says marrying the two industries can work wonders - for some people
  • Country Broker | 11 Oct 2013, 10:50 AM Agree 0
    I can understand why they need to do this , I simply Finance/Mortgage Brokers should be that just Finance / Mortgage Brokers. I am in an office with affiliated Financial Planners and Accountants and it works really well .
    I thinks joint ownership of both possibly causes conflict of interest problems ( Think SMSF Applications and impartial advice for one) and possibly PI problems that could go with that. If they can overcome this perceived risk good luck to them. It is not for me.
  • Old Broker | 11 Oct 2013, 11:29 AM Agree 0
    Country Broker
    The PI, SMSF issues are covered by the fact that you require separate entities, PI cover etc to operate a planning business.
    The advice issue with clients hasn't come up in fact clients think it is a good idea and mine have certainly embraced it
    It has added to my service to clients and so far at least no client has refused to take up the advice offered when also completing a mortgage either purchase or refinance
  • Steve McClure | 11 Oct 2013, 04:05 PM Agree 0
    Here's a question, with the greatest of respect, because I admire anyone who can carry on more than one profession.... If, in your capacity as a financial planner, your client proposed a property investment, requiring borrowings (and under your broker hat, you can easily arrange that) but by all objective measures that investment had less merit than an alternative, that might not require your services as a broker. Would you recommend they not proceed? Just because you can recommend SMSF property and do the loan as well, does that suddenly make property a better investment? Just wondering.
  • Old Broker | 14 Oct 2013, 11:29 AM Agree 0
    In ALL recommendations either as a broker or Planner the clients best interest must come first (under planning the best interest provision is really how your advice would be judged in a disputed matter)
    The advice would be given based on return, costs, taxation position etc
    However as you also know clients will take advice but also sometimes will want to rest on 'bricks and mortar' rather that market investments and this will work with the argument that investments should be spread across a number of classes of investments
    I do not advise on SMSF at this stage
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