Over the last decade, the financial services industry has seen great changes. The introduction of FSRA, for example, has subjected the industry to much more onerous education and accreditation requirements. And the exponential rise of the mortgage broking industry has changed the way consumers shop for home loans. These two examples show how the industry is becoming more specialised. In years gone by, most people sought the advice of their accountant for financial advice. Now, accountants can only provide advice if they hold an appropriate Proper Authority. So with today’s ever-changing and increasingly specialised financial services industry, how can you provide a more complete service to your clients?

Professional partnerships with accountants, solicitors and financial planners
Professional partnerships with accountants, solicitors and financial planners may provide an excellent way to not only service your existing clients more comprehensively, but to attract new clients to your business without a large capital outlay.

Opportunities for mortgage brokers
Mortgage brokers may consider the benefits of professional partnerships with a financial planning practice or dealer group. In fact, financial planners are now discovering the benefits of offering mortgages to complement their existing services. Many now are either accredited to provide advice on mortgages themselves, or are employing qualified mortgage brokers within their financial planning practices. This awareness by financial planners of the importance of mortgage broking could provide excellent opportunities.

Also, with newer products such as reverse mortgages requiring a higher level of advice from the likes of financial planners and/or solicitors, having another professional you can confidently refer your clients to for independent advice will keep your clients satisfied with your service and can provide a point of differentiation over your competitors.

Opportunities for finance brokers
Finance brokers may consider professional partnerships with an accountant or financial planner. Financial planners have enough product accreditation to keep them busy with superannuation, managed investments and life insurance without becoming involved in consumer credit products as well. Having a partner they can trust to refer clients to who are seeking finance for a new car or boat, benefits them, you, and importantly, the client.

Opportunities for insurance brokers
Insurance brokers could consider professional partnerships with financial planners. While many financial planners are accredited to sell life insurance, salary continuance and business insurance, they are often not qualified to provide general insurance such as boat insurance, comprehensive car insurance, Compulsory Third Party (CTP) insurance and home and contents insurance. Also, there may be partnering opportunities with accountants and solicitors. For example, if you provide life insurance to a client, you may refer them to your solicitor partner to update their Will or to receive legal advice. Likewise, the solicitor may have a client who has come in to update their Will and they may refer them to you for advice on updating their insurance policies.

Partner with the right professional

If you decide on exploring this option, there are a couple of points to consider. Firstly, you need to trust your professional partner. You need to feel confident referring your clients to them. Also, choose someone in your local area. There’s no point partnering with someone if it’s too difficult for your clients to travel to them.