Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

×

Warning

JUser: :_load: Unable to load user with ID: 870

Broker-planner JVs on the rise, says aggregator

partnership  x

partnership  x
1 minute read

New business structures are being formed between mortgage brokerages and financial planning firms in place of traditional referral deals.

Kevin Frost, general manager of aggregator Centrepoint Lending Solutions (CLS), said the method of business partnerships between the two sectors is undergoing a shift.

Historically financial advice and accounting practices would approach CLS to provide lending referrals to a broker outside their practice. Now, they are adopting new structures more akin to joint ventures, Mr Frost said.

“Many advice practices are now setting up new business structures and either employing brokers on salaries or both parties are taking a financial stake in a joint venture or partnership,” he said.

"This approach means that internal referral processes can be properly integrated, and office and administration costs can be shared. Most importantly, it means the mortgage broker becomes an integral part of the business.”

This change in business structure could see an increase in the volume of loans written.

“It also means the mortgage broker can properly leverage their client base by referring them for financial advice,” Mr Frost said.

A Brisbane financial planning group recently approached CLS to source an existing mortgage broker who would join their firm on a salary plus profit-share basis, with the group willing to buy out the broker's current trail book, he said.

Advertisement
Advertisement

PROMOTED FEATURES


"This approach isn't for all mortgage brokers, advice or accounting practices. There are still many practices who are content to simply refer each other business, and this often makes sense in terms of their size and focus.”

[Related: Get personal if you want more referrals]

Broker-planner JVs on the rise, says aggregator
partnership  x
TheAdviser logo
partnership  x

 

more from the adviser
fight boxing gloves FBAA says ‘clawback fight’ is not over

While the regulations for clawback arrangements have now been set...

digital home ta Connective adds digital mortgage lender to panel

The aggregation group has welcomed neobank 86 400 to its lender ...

team expansion ta Personal lender joins AFG panel

A marketplace lender has joined AFG’s panel of specialist finan...

FROM THE WEB