Planners lift mortgage broking standards
Adelaide-based consultant Max Franchitto (pictured) claims there is nothing new in financial planners moving into the mortgage broking sector, with much of the motivation being the poor quality of the advice handed out by mortgage brokers.
He said that while the National Consumer Credit Protection Act (NCCP) had played a part in the decision-making of some planners, it had not proved to be the ultimate catalyst.
Franchitto said he believed the NCCP would have much the same impact on the mortgage broking sector as the Financial Services Reform Act had had on the financial planning sector in terms of flushing out bad players.
He also questioned whether commissioned-based remuneration would survive in the mortgage broking sector in circumstances where mortgage product commissions carried the same burden of ‘conflict of interest’ and ‘fiduciary duty’ as investment platforms and products.
Franchitto predicted that, increasingly, mortgage broking would cease to exist as a single channel and would give way to a one-stop shop based on financial planning and the delivery of other services.
AUTHOR
Mike Taylor
Recommended for you
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
There have only been a “handful” of opportunities in the last 20 years when infrastructure has looked as cheap relative to equities as it does now, according to Lazard, making it a viable option to provide portfolio security amid market volatility.
While M&A has ramped up nationwide, three advice heads have explored Western Australia’s emergence as a region of interest among medium-sized firms vying for growth opportunities in an increasingly competitive market.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
