A report by InvestorDaily publisher Sterling Publishing found 72.1 per cent of the 143 surveyed financial services professionals think that it is feasible for financial planners (with the appropriate licensing and qualifications) to offer mortgage and debt advice, 18.6 per cent disagree and 9.3 per cent are unsure about it.
Overall, more than half (58.2 per cent) of the surveyed financial services professionals don’t offer mortgage and debt advice/products such as residential mortgages, specialist lending and leasing and equipment finance in addition to financial planning.
However, a total of 42.8 per cent are currently offering residential mortgages (39.7 per cent), commercial property mortgages (28.4 per cent), leasing and equipment finance (20.6 per cent), and specialist lending-credit impaired, self-employed etc. (19.1 per cent).
The findings come after a rising trend in the convergence of financial services professionals has been cited by a number of industry figures.
While convergence is a two-way street, there is more evidence of financial planners moving into broking than the other way around, according to Financial Planning Association of Australia (FPA) general manager, policy and government relations Dante De Gori.
“Financial planners are seeing some merit in becoming a credit rep or licence holder,” Mr De Gori said. “There is a lot more anecdotal evidence that I have seen of financial planners having mortgage broking services available as part of their business.”
According to the report, 44.4 per cent of surveyed respondents believe most financial planners will offer mortgage and debt advice within the next five years.
Of the 143 total survey responses, financial planner or adviser (65.5 per cent) is the largest occupation segment cited by the surveyed respondents (12.9 per cent of this group are also risk adviser-financial planner/adviser+risk adviser; 7.5 per cent are financial planner/adviser+mortgage broker; 4.3 per cent are financial planner/adviser+risk adviser+mortgage broker), followed by risk adviser (16.9 per cent – 12.5 per cent of this group are also financial planners-finance broker+financial planner) and other financial professions, such as deal group executive (14.8 per cent), mortgage brokers (12 per cent), accountants (8.5 per cent); and a small proportion of finance brokers, para planners and lenders (surveyed respondents can have multiple professions).
