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Future Financial Services Blog

by Alex McKenzie

Financial planning advice to guide you through your life stages. Financial advice for when you are looking to buy your first home, start a family or looking to retire. This blog aims to show the relevance of Superannuation, insurance and investment for everyday families.

06
February
2020

Mortgage Brokers and the Royal Commission

Mortgage Brokers and the Royal Commission

When I pored through the findings from the Royal Commission, my heart sank when I read the recommendations in relation to the mortgage broking industry. If adopted (which is not guaranteed), the recommendations will wreak havoc on the entire industry and undoubtedly see many small mortgage broking businesses fold. It is also very bad news for consumers and, in my view, a huge win to the banks. I strongly believe it is a terrible policy.

The mortgage broking industry has grown over the last 20 years and, overall, this has meant that consumers are better off. The broking industry has created a fluid market with borrowers far more inclined to move between lenders. This has led to increased competition; banks have created more innovative and flexible products, second tier lenders have found niche’s in the market and provided loans for those who previously were unable to qualify. The broking industry has created a much more even playing field between borrower and lender.

Written by: Alex McKenzie Categories: Future Financial Services Blog

06
February
2020

Royal Commission Recommendations

Royal Commission Recommendations in relation to Superannuation

For people like me in the financial services industry, waiting for the findings and recommendations of the royal commission was quite stressful. After months of hearing horror stories of the behaviours of the banks, superannuation funds and insurance companies it became apparent that changes needed to be made. What the little guys like me were concerned about is how would the changes impact my business and my clients.

Although the criticisms against the banks were harsh, the changes to business operations were not as brutal as many were predicting. Many were predicting that banks would be forced to move away from there vertical integration model. This is where they own both advice and wealth businesses and the potential for conflicted interests are high. The concern is that the banks (including AMP) use their advice business to funnel funds into their wealth businesses, not always in the best interest of the client. This did not come to fruition.

Written by: Alex McKenzie Categories: Future Financial Services Blog

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