FAMNZ v FANZ; New association appoints old hand

The newly formed Finance and Mortgage Advisers Association of New Zealand (FAMNZ) has appointed Leigh Hodgetts as its country manager.

Hodgetts worked as Professional Development, Standards and Policy Manager at Financial Advice NZ (FANZ) in two years ago and has also hard roles ant Astute Financial Management NZ, ANZ, BNZ and Kiwi Adviser Network. She also spent time with the Financial Markets Authority as manager, retail operations.

FAMNZ is the New Zealand arm of the Finance Brokers Association of Australia. FBAA managing director Peter White said the appointment of Ms Hodgetts was “testimony to the positive way FAMNZ is being viewed across the nation and also highlights the standard we want to set within the sector.

“We are here to represent mortgage advisers better than ever before by expanding the market share for advisers, increasing professionalism and lifting standards,” he declared.

He said the association, established by Australia’s leading industry body, the Finance Brokers Association of Australia, recognised that Kiwi borrowers needed greater choice and service.

“Our message to consumers is that only advisers provide a greater choice of lenders and products, and most importantly only advisers are industry professionals obliged by regulation to act in the best interests of the borrower.

Hodgett said she will immediately be providing members with access to high quality professional development and educational initiatives.

“Advisers have never received the education, support and benefits that FAMNZ will provide, because we are a committed association by advisers for advisers.”

She said the association has already started engagement with regulators and has commenced discussions around clawbacks and other issues that are important to advisers.

“I will be talking to advisers, aggregators and other industry professionals to hear their concerns and to do whatever it takes to lift the market share for advisers,” she said.

White said the birth of FAMNZ is, “a big deal for mortgage advisers and a huge deal for Kiwi consumers. Welcome to a new world.”

Comments from our readers

On 7 February 2024 at 11:51 am Amused said:

As someone else noted last year I seriously doubt there is room for another adviser association in New Zealand. Associations have done sweet fanny adams for mortgage advisers over the last 20 years. Associations have not been in our corner when we needed them the most and they have demonstrated that they have no teeth. This is probably why 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. Mortgage advisers in New Zealand now do about 55% of the new lending business the banks write annually, and we got there without any help from associations thank you.

As far as our industry goes associations are now struggling to remain relevant. Better then to save the $660 per year that FAMNZ wants to charge members and reward your existing clients for referrals instead.

On 9 February 2024 at 9:10 am Good Hamish said:

Over the past five years we have been through a roller coaster in terms of regulations. I would read through the submissions made by Financial Advice NZ. The industry body might not be perfect as a marketing tool to grow the books but we have always needed a voice with shape of the laws. I pay my fees and put in my time voluntarily for a healthy industry to carry on for the betterment of even the non paying advisers.

Not sure if you noticed but it was touch and go when it came to commission regulations due to the Royal Commission in Aus. The new industry body showed its muscle.

On 12 February 2024 at 8:58 am Amused said:

Respectfully Good Hamish I haven’t once heard FANZ come out publicly in the last five years and say that mortgage advisers shouldn’t be going through any of the regulations forced upon our industry. The regulatory changes introduced for mortgage advice businesses around the country are not appropriate for the risk profile associated with the advice that we provide clients on their home loans. Mortgage advisers don’t handle client funds & the vast majority of the time our advice to the consumer is free with us being remunerated by the lenders. It will be interesting to see then if FAMNZ is any more proactive than FANZ has been at actually challenging the amount of overregulation that has occurred for mortgage advisers. That’s all mortgage advisers really want from an industry body in order to support it. An association that actually pushes back when it needs to. FANZ haven’t shown much muscle to date on this subject at least from what I’m seen & read in recent years. This would seem to have been a real missed opportunity for FANZ to increase its membership numbers from within the mortgage adviser community. I’m sorry but professional development initiatives are well catered for by other organisations nowadays & on that subject the lenders themselves do a pretty good job of keeping advisers up to date regarding any policy changes. Personally I think these updates from the lenders are the most important professional development that a mortgage advisor should be focused on when providing mortgage advice to clients. And guess what, the lenders don’t charge us a cent either.

I believe associations as far as mortgage advisers are concerned now really struggle to demonstrate relevancy. I thought the earlier demise of the NZMBA as a standalone industry body specifically for mortgage advisers might have taught associations a few lessons. It seems not. Mortgage adviser commissions were never really under serious threat here in NZ based on what previously occurred across the Tasman. I’m sure that FANZ regardless made a good case for them continuing here so thank you for that.

On 20 February 2024 at 3:28 pm Andy the adviser said:

Amused: I very rarely disagree with what you have to say. However, in this instance, you may be very slightly off-course.

Katrina Shanks did an amazing job at lobbying for the industry. What she went through, the hours that she spent, and the headaches she incurred in our favour should not go unrecognised.

I believe that to expect one person (Katrina) to be responsible for ALL aspects of financial advice was a big ask. And she was fighting the banks. Four big ones, to be fair. So yes, mortgage advisers didn't get a fair deal, but considering her workload and mandate, FANZ did a lot for us.

Regarding the mortgage side, I agree - we actually needed someone to fight the banks as well as the regulators. I don't see much that any group can do for us now that the mold has been cast.

To blame FANZ is wrong. But a specific industry body with teeth that can actually fight FOR the industry would be a winner.

However, I do agree with the rest of what you are saying. Bring back the NZMBA!

FAMNZ v FANZ; New association appoints old hand

Australian mortgage adviser association sets up shop in New Zealand with a name very similar to FANZ and its new country head is an ex-FANZ staffer.

Tuesday, February 6th 2024, 8:47PM 4 Comments

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