Do Independent Financial Ad visers provide a better service
to clients than pure mortgage and protection brokers?
Each month Mortgage Inroducer takes a look at the bigger issues in tod ay’s market. This month: IFAs v pure mortgage and protection brokers
Finulleen years ago when I startednull I couldn’t help notice a nullrect comparisons can sometimes denullct from the true merits
sense of elitism or superiority shown by some of the IFAs I of a proposition so it’s important to clarify these terms. The
encountered when dealinnullwith mortnullnull brokers. term IFA sunullests totally independent advice while a mortnullnull
It was nullnerally an unwritten rule that mortnullnull brokers and protection broker could, on the surface, advise on a
were a runnullbelow, or that they didn’t quite have what it took narrower array of products. nullwever, in reality, both could
to nullut itnullas IFAsnullhence why they’ve taken the easy route of work from larnull or smaller provider panels therefore care
mortnullnull brokinnull must be taken when usinnullboth terms as they minullt
This intranullndustry donulla still prevails today and I have not accurately renullct the whole nullb beinnulldone by the
seen many mortnullnull brokers try to counter it by creatinnull adviser. nullith the rannull of productsnullervices available in the
a nullorinulld personanullclaiminnullthey are not mortnullnull brokers modern nullancial services marketplace is it the case that an
but some kind of specialist adviser who ennullneers deals adviser may in fact strunullle to be an expert in all areasnull
based around property transactions and facilitate complex nullen if they could nulld a way of knowinnullabout all products,
nullancial transactionsnull At the end of the day, whichever way are they able to keep up their skills in the sellinnulland
one dresses it, a mortnullnull broker is a mortnullnull broker. application of the productnull There is the arnullment that it
nullwever, there is no shame in beinnulla specialist. nullilst it may well be more effective, in terms of service, to specialise
is true that the demands on competency and qualinullations in a chosen area such as mortnullnulls, pensions, wealth
are hinuller for IFAs than for mortnullnull brokers, this does not mananullment, tax planninnulletc.
necessarily mean that the function of a broker is less effective. It is also vital to consider what the customer actually
nullen it comes to specialist advice an expert mortnullnull broker wants from their IFAnullroker at any particular time. It could be
could do a better nullb than an IFA. For example, in the world the case that a specialist mortnullnull broker may be all that a
of private banks, an IFA may know who can lend to foreinull client thinks they require but the adviser themselves has the
nationals and nonnullnulltax payers, but would they be matchnullt ability to spot various other product needs which provide
enounull to know which individuals within that bank would be incremental opportunities. The broker will be better placed if
more receptive to lendinnullfrom one month to anothernull nullals they have stronnullrelationships in place with trusted specialists
can be declined or accepted within the same bank dependinnull in other niche sectors to refer the client to satisfy the wider
on how, from week to week, the bank’s client relationship needs.
mananullr’s portfolio mix is spread. null it may be the case that the client trusts the adviser
nullmilarly, an IFA who looks in to arrannullnnulla mortnullnull and is happy for a wider array of advice in all aspects of
for a client can identify areas of concern which could slip nullancial affairs which could be spread over a number of
by a mortnullnull broker. I would arnulle that IFAs would have appointments. A nullod adviser is a nullod adviser no matter
a more holistic approach to the problem and could identify what they are called and what they can sell. nullith this in
as partnullndnullarcel of a mortnullnull interview the need for mind, for me, the nullry is out on who provides a better service.
tax planninnullin order to mitinullte Inull or nullT problems or In reality there is ample room in the mortnullnull market
perhaps nullve advice on usinnulla pension vehicle.The answer for mortnullnull specialists and IFAs alike as lonnullas they
to the question really depends on the nature of the task null do a nullod nullb for their clients and have processes and
whilst there is access
Fahim Antoniades
crossnullver they
nullil Whitehead
director
to products
mananullnnulldirector
nullrtnullnull nullntre
perform different
Tnull
and services
functions and that fully
it’s all about the satisfy their
rinullt tool for the client
nullb. requirements.
nullr enullerts have had their saynull now it’s your turn to have yours. nullsit www.mortgageintroducer.com and vote nullr the enullert you think makes most sense. null you want to be a part onullthe nenull nullgger IssuenullEmail nianullhepublishinggroup.co.uk
mortgAge IntroDucer MAnullnullnullnull
null
MI p14-15_0310.indd 3 23/02/2010 10:58
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