The soon-to-be-launched Ray White advice business will not be influenced by the real estate firm's existing mortgage broking division, says Wealth Market head of risk and compliance Steven Quine.
Speaking to ifa, Mr Quine has rejected suggestions made by ifa commenters that Wealth Market planners will be under pressure to sign off limited recourse borrowing arrangements within SMSFs by Ray White’s mortgage broking arm Loan Market.
“No – I mean that is a fairly long stretch to go from that to the other,” Mr Quine said. “I don’t think any of that is necessarily disseminated off the back of mortgage broking, I just think it is another door that leads people to that conversation.”
The announcement of Ray White’s intention to enter the advice market earlier this week, has sparked comments that the firm will be a pawn for its mortgage broking business Loan Market.
One reader questioned how the services of Wealth Market could “possibly be described as financial planning” as “it sounds more like property flogging”.
Another reader expressed their concerns as to whether the business culture would be “driven by sales commissions and rent roll commission”.
“How this sales culture is inoculated from the advice arm of the business is my biggest concern,” an anonymous commenter said.
“That and they want someone with ‘solid sales background’ means they may struggle with the concept of the ethical professional,” they said.
However, Mr Quine explained that Wealth Market will be able to assist the “record numbers” of people borrowing large amounts of money to be able to afford their own home - which he says is a predominant issue.
“The immediate need is protecting their assets and their ability to gain affordability and sustainability of that arrangement,” Mr Quine said.
The prudential regulator has announced one of its planned new restrictions for individual disability income insurance (IDII) will be pushed back a yea...
Treasury could opt to scrap general advice entirely as part of its 2022 Quality of Advice Review, but the move would need to be carefully reviewed to ...
The wealth giant has unveiled a raft of management changes – including the exit of a key advice executive – following new AMP Australia chief exec...