The Financial Services Convergence survey, conducted by ifa and sister publication The Adviser, has found that a majority of mortgage broking professionals (55 per cent) believe it is practical for brokers to provide financial planning services, while 32.4 per cent do not.
Of the 149 responses, 71.6 per cent of respondents believe it is a genuinely valuable proposition to be able to offer solutions that meet all of a client’s financial needs.
“We know their financial position and it would be a simple step to discuss their financial goals and provide solutions,” commented one anonymous survey respondent.
“[A] majority of info for both can be collected at the same time, plus [the National Consumer Credit Protection Act regulations] should ensure we collect the info to determine suitability,” said another.
Yes its true finance brokers do collect data on a persons income and expenses, asset and liabilities etc, to be able to assess and arrange a loan.
Finance brokers will need to do a lot more study to understand financial markets, economic cycles, modern portfolio asset allocation theories, the impact of taxation on investments and issues such as how much is enough to fund a comfortable retirement, before they will be able to provide quality financial advice.
Or alternatively they could form a joint venture with a capable and objective financial advisor business, who in unison could look after their clients investment, insurance, superannuation and retirement funding needs