Advisers from banking institutions and large dealer groups have approached independent home loan specialist Mortgage Choice regarding its plans to launch a financial planning business in early 2013.
“We’ve had enormous interest from financial planners across the country, a lot of whom are employed within banks or established financial planning businesses,” Mortgage Choice chief executive Michael Russell told InvestorDaily.
The majority of advisers for the business were therefore expected to come from those channels, Russell said.
The Mortgage Choice planning business would be positioned as a completely stand-alone, independent franchise system, although parts of the back office would be leveraged off the existing business.
“We intend to hold our own licence and go out with a soft launch, piloting up to 10 franchises early next year,” Russell said.
“Planners see our franchise offering as a good first step out into self-employment as it’s an anxious time for someone considering going into business on their own without a brand and without a lead supply.
“They also get an opportunity to partner up with our mortgage brokers.”
The planning arm would provide a holistic advice offering and cover insurance, superannuation and investments, he said.
Its aim was to close the gap in financial planning accessibility and affordability to everyday Australians.
“The demographic that are our customers have been largely ignored by the financial planning industry [as] it has mostly targeted high net worth individuals, as they’ve been able to afford the full advice model,” Russell said.
Mortgage Choice would release its project plan in the second quarter of the year with an update on the plans, timing, costs and growth projections.
It was undeterred by the Future of Financial Advice reforms or the pressures felt by the dealer group sector, Russell said.
