“I hear a lot of advisers feeling nervous about how it’s all going to go”
While the first regulatory hurdle has been passed, mortgage advisers are gearing up for changes to the Credit Contracts and Consumer Finance Act (CCCFA) and COFI, which currently still encompasses advisers – and, according to Astute Financial, there is some nervousness within the market around how difficult it will be to operate under the multitude of new rules.
Business development and operations manager Joe de Sousa said that Astute has been doing its best to help prepare its members, and the ultimate goal is to ensure they are confident giving advice - something which some advisers are finding it increasingly difficult to do.
“I hear a lot of advisers feeling a little nervous about how it’s all going to go, and it’s become more difficult now than it ever was,” de Sousa said.
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“We want to make sure our members are always giving customers the right advice, but also that they’re comfortable to give that advice while knowing that they are fulfilling all of their requirements.”
“We have training courses available on regulatory requirements, conflict of interest, the Financial Markets Conduct Act, the CCCFA, and many other issues,” he continued.
“My advice to anyone is to come and talk to us if you’re feeling overwhelmed with all of the compliance. Come and sit down with us and have a chat about how you’re feeling, why you might feel that your business is not working, or that it’s all too hard.”
While more advisers have been seeking support from broker groups, de Sousa said that some are still considering dropping out of the industry. He said Astute’s aim was to take the compliance journey step by step, and to discuss small, incremental changes that advisers can make to their businesses.
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“We’re not throwing too many things at our advisers in one go,” de Sousa said.
“We’re trying to get them through one thing at a time, and to change things around in a way that doesn’t make them feel like it’s too complicated or too hard. However, we know that some areas of the advice market have considered leaving the industry altogether.”
“We have things like the CCCFA coming soon, which will make things even more interesting,” he added.
“We’ll be at a point where 100% of all expenses will need to be listed and itemised, among other things. But we’re always looking to see how we can help.”
