Thinc Group chief executive Simon Chamberlain is calling on advisers to ensure that mortgage advice is given as part of an holistic financial planning service.
Speaking to Money Marketing TV this week, Chamberlain says the news that the FSA is to investigate the quality of sub-prime loan advice means it is imperative that advisers take action to ensure mortgages are treated as part of a client’s overall wealth management advice.
He is concerned that many mortgage firms which were not regulated before M-Day are at greatest risk of falling foul of the regulator and that this could lead to an overhaul of how they carry out the advisory process.
Chamberlain says: “I think the big issue about to hit the industry is mortgage regulation. Some businesses have huge volumes of sub-prime and interest-only or self-cert. I would be astounded if the FSA did not take a closer look at that across the industry, particularly around affordability.”
He also calls for smaller IFA firms to embrace a fee-charging business model.
Chamberlain says: “There are many small accountants and solicitors but they do not do anything for free.
“Once that kind of attitude is adopted by all advisers, not just wealth managers, we can get to a point where people value themselves enough to charge for their time. Then all businesses will have a value.”
For the full interview, see Money Marketing TV at www. moneymarketing.co.uk.