Brokers vs planners: Have we finally found common ground?

by Mackenzie McCarty12 Apr 2013

As financial planners and mortgage brokers eye off each other’s territory, one financial services group which has tried a number of different integration formulas, has found there is a workable solution.

According to Trigon Financial founder, Alan Rich, a successful formula needs to account for many aspects, including advisers’ qualifications, people’s motivations, clients’ interests and the ingredients for maintaining a sustainable longer-term solution that suits everyone.

In his experience - which has spanned straight referrals, no fees, DIY, commission sharing, cross-hiring and mergers - only joint ventures that work in everyone’s best interests, including clients, have proven to be lasting.

Rich tells Australian Broker there are a number of issues that cause some integration techniques to fail, but says a key one involves planners taking over the broker role – only to put it aside when the planning side of the business gets heavy.

“What I’ve seen is that the financial planner thinks it’s a good idea to take on broking, but when their financial planning side of the practice gets busy, then the broking side softens - then they start to question if they should do it at all. They’ve done the broking to diversify, but when push comes to shove they go back to the thing they like.”

Another issue is one of communication, says Rich.

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  • by Lesley Wood 12/04/2013 9:33:54 AM

    At Australian Loan Company we have been doing this for 10 years and I agree with the comments made. Over the time we have established numerous partnerships, referral agreements and grown many business in this way. You are right it is a proven formula.

  • by Broker Chris 12/04/2013 9:35:27 AM

    Totally agree. We have had this model for years. We have over 120 planners and 20 brokers. None of them hold dual authorisations as we have found that it is better to do one thing great and refer other services to an expert on a fee sharing arrangement.

  • by SIDBROKER 12/04/2013 9:45:34 AM

    I have always found financial planners very helpful. They are so keen to get access to my client data base and yet have no intention of giving any access to theirs. I guess it a matter of whats yours is mine and whats mine is mine also. Thanks very much.