Poll: Do brokers have the 'aptitude' for financial planning?

Poll: Do brokers have the 'aptitude' for financial planning?

Poll: Do brokers have the There's a global debate brewing on whether mortgage brokers have the "aptitude" to add financial planning to their repertoires – a question doing little to stem the flow of players doing just that.

One of Australia's most respected advisors is the latest to weigh in on the discussion, setting off a firestorm of controversy in suggesting financial planning is simply a "bridge too far” for mortgage brokers.

“Because of the training requirements to be a financial planner,” says Mark Spiers, brokers face a learning curve that precludes their entry into financial advising.

And it seems that the readers of MortgageBrokerNews.ca’s sister publication, Wealth Professional, share the same view, with a recent poll finding that 85 per cent of voters believe mortgage brokers don’t have the “aptitude for financial planning.”

The comments come on the heels of growing debate not only in Australia but in both the U.K. and the U.S., where challenging markets are sending a growing number of brokers scrambling for alternative revenue streams.

In Canada, a relatively strong real estate market has slowed the pace of any migration to financial planning, but that's also changing as brokers look to deepen their utility for clients.
“I know many of our members and brokers in general who are also involved in financial planning and do it extremely successfully,” said one industry player.

However, it wouldn’t be fair to deny our readers, mortgage brokers – and the very people these financial advisors believe don’t have the ability to add wealth planning to their toolkit – the chance to weigh in. So click here to vote on whether you believe mortgage brokers have what it takes to also act as financial planners. And don’t forget to leave your comments below.
  • Christopher 2014-04-08 11:08:36 AM
    Some mortgage brokers, bankers and financial planners don't have the aptitude for either disciplines, but it doesn't stop them.

    Standards are far too low for both.
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  • Mike Rice 2014-04-08 11:16:08 AM
    We need to shift the attitudes of financial planning and what it means. Being a Lender for over 25 years the majority of my clients don't need advice on which mutual funds to buy, they need advice on debt management. Financial institutions have it backward because they try and sell mutual funds to people who can't afford it but they need the trailer fees for revenue. Just because helping clients budget and get them out of debt doesn't help attain revenue for the f\i in the short term, building loyalty by getting them out of debt and helping them reach their goals in my view goes much farther in bringing a client back. The problem is, even though debt management is far more important to people in debt than financial planning and buying mutual funds their is no money in it. From a Lender/Broker perspective we need to do a better job of helping clients with their budgets not selling them a retirement fund. Sure retirement is important, but what good are retirement assets if the debt is giving them a negative return....I'm just saying!!
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  • Paul Mangion 2014-04-08 11:40:18 AM
    Financial planner rules. Send money to highest commission payer. When last have you ever heard a financial planner say better stay cash or gold because on market corrections coming. The best is when your portfolio is down 25% and they say this is a long term strategy so don't worry about it. How about rebating the client back your commissions when there account is under water. I used RBC Wealth and they destroyed my portfolio. Funny thing is if they rebate me back all the commissions I would at least break even. An experienced mortgage broker can do a better job than most financial planners.
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