Financial Services Federation targets mortgage advisers as affiliate members

The Financial Services Federation, which mostly represents non-bank financiers, has started signing up mortgage advisers as affiliate members.

Friday, July 19th 2024, 9:07AM

by Jenny Ruth

Adviser groups including Loansmart and One Partner are now affiliate members.

About to turn 60, the Federation has been run off its feet in preparing about 11 submissions on different consultation efforts ranging from the new government's plans to simplify the Credit Contracts and Consumer Finance Act and the Financial Markets (Conduct of Institutions) Amendment Act (CoFi) to the Commerce Commission's market study of competition for personal banking services to the Reserve Bank's consultations on the rules for the new Deposit Guarantee Scheme and whether it should widen admissions to the Exchange Settlement Exchange System (ESAS).

The implications of all these changes do directly impact on mortgage advisers.

Executive director Lyn McMorran says she's also expecting the new government to start consulting on changes to anti-money laundering legislation to both simplify and strengthen it.

She notes that something as seemingly simple as verifying addresses can be a difficult obstacle for young people moving into their first flat, for ex-prisoners and for the homeless.

The Federation has partnered with financial education company Strategi to create a level five “micro” credential in consumer credit and McMorran says she hopes to develop that further into a full programme for advisers.

It would be much more relevant to mortgage advisers and give them a more relevant qualification,” she says.

Federation marketing manager Hannah McKee says that while the new government's proposed changes to finance sector legislation has meant a lot more work for her organisation, “it's a sign of a new government that wants to get things done.”

The proposed widening of access to ESAS is certainly dear to the Federation's members' hearts; currently, they have to park spare cash with banks, who are ESAS members, and they have to pay those banks for the privilege.

Members of ESAS lodge funds with the Reserve Bank, which pays them whatever the official cash rate is, currently 5.5%.

Tags: mortgages