Fee for service key to convergence
A fee-for-service remuneration model breaks down boundaries between financial planning and mortgage broking services in the best interest of the client, according to a boutique adviser.
Speaking to ifa, Waterfall Way Associates director Dacian Moses said there is no division in the way he offers mortgage advice and financial planning.
“Our business is retainer-based with all commissions rebated,” Mr Moses said, “so I didn’t find it difficult to provide mortgage advice as part of the credit advice offering we already provide.”
While FOFA reforms have done away with conflicted remuneration, the company moved from a commission structure to a flat retainer structure “quite a few years ago”, Mr Moses said.
“It is pure fee for service, but we call it a flat retainer,” he said. “Our fee is determined by the work that we have to do and the value that we add more than the product involved.”
Waterfall Way Associates is a financial planning business that recently decided to converge with mortgage broking services.
Mr Moses is this week completing his studies to become a qualified mortgage broker. He will then commence two years' mentoring with an MFAA-accredited broker before he starts writing loans himself.
“I actually want to make sure that services are provided in-house where we have the capacity to do that effectively,” he said.
While Mr Moses is confident a financial adviser can wear “a number of different hats”, he also understands the importance of referral relationships.
“I’m going to encounter situations where my mortgage broking expertise is not up to the job,” he said. “In that situation, I will refer the client out to a broker with more expertise.”
FPA advocacy too ‘politically correct’, says CEO
EXCLUSIVE The Financial Planning Association of Australia has taken an advocacy ...
Wealth management investigations up 216%
ASIC has revealed a 216 per cent increase in the amount of wealth management inv...
FASEA guide ‘above the current law’: AFA
The recent guidance from the Financial Adviser Standards and Ethics Association ...