Mortgage broker Mortgage Choice has announced the soft launch of its new financial planning business, saying it plans to revolutionise the way consumers access financial advice.
The company, Mortgage Choice Financial Planning, will operate as a separate franchised business to the existing mortgage broking operations, which will enable brokers and planners to provide specialised services to customers.
Six insurers have already been selected to the group’s approved product list. They are:
- Asteron
- CommInsure
- Macquarie Life
- MLC
- OnePath
- TAL
Mortgage Choice says it plans to extend its ‘paid the same’ philosophy across insurance, which means advisers will receive no financial incentive to recommend one insurer over another.
General Manager for Mortgage Choice Financial Planning, Tania Milnes, said strong leads were expected to flow from the 80,000 new customer enquiries received by Mortgage Choice each year.
“When you look at the forecasted growth across scaled advice, superannuation and risk insurance, our customers sit right across these growth segments and we know that by transitioning to a financial services business that we’ll be able to satisfy their complete needs,” Ms Milnes said.
We intend to challenge the status quo
“With institutional independence scarce and FoFA changing the competitive landscape, we firmly believe that the timing is right for Mortgage Choice to enter the market. We intend to challenge the status quo and make financial advice more accessible to all Australians.”
The first franchises are due to be opened in Sydney, Melbourne and Brisbane during November, with a full roll-out planned for July 2013.
The group is hoping to have 60 financial planners operating under the Mortgage Choice brand nationwide by the end of 2015. Planners looking to join the group must hold a Diploma of Financial Services (Financial Planning) and have solid financial advice experience.
In addition to recruiting advice professionals, Mortgage Choice says it has established a team of industry experts to help build a compelling proposition for franchisees and consumers.
“We have recruited a team of industry experts and partnered with specialist investment research house, van Eyk, together with its leading practice management consultancy division, The Encore Group, to build a best in class dealer group,” said Ms Milnes.
“As part of our ongoing commitment to fulfilling the requirements of legislative reform, we also work very closely with Catalyst Compliance.
“We look forward to revolutionising the way consumers access quality financial advice, in the same way we did in the home loan business 20 years ago,” Ms Milnes said.
