Mortgage advisers to be offered another association choice

Over the last 20 years what have associations actually done for the New Zealand mortgage adviser industry? Sweet fanny adams. With clawbacks now as long as 28 months, the banks introducing a digital refix process to sever the adviser’s relationship with their client and the panel valuation ordering service destroying advisers’ relationships with experienced valuers the mortgage adviser industry has been on a continual losing streak for several years now.

The fact is ladies and gentlemen associations have not been in our corner when we needed them the most. They have demonstrated that they have no teeth. This is probably why then none of the advisers I know are members anymore. The associations have next to “zero” presence with the NZ consumer who don’t see any advantage in dealing with a mortgage adviser who is a member. When did you last have a client approach you just because you belonged to an association? With licensing’s arrival it’s telling that the FMA haven't made membership of an association compulsory and none of the lenders require an adviser to be an association member to hold accreditation with them.

Given all the above what is the value then in a mortgage adviser now belonging to an association? Between annual licensing costs, dispute resolution scheme levies and professional indemnity insurance premiums mortgage advisers have enough to fund annually without also having to pay to belong to a voluntary association who frankly won’t be doing anything for our industry based on their track record to date. As far as our industry goes associations are now struggling to remain relevant.