Groups and associations are the themes in this week's newsletter. Last week we asked what mortgage advisers thought of the idea to create a new association, Financial Advice New Zealand. We have put responses here so you can get a flavour for what people are thinking.
Overall the concept seems to be quite well received however, and it is no surprise, there will a lot of work needed to win over some segments of the adviser community. I would encourage you all to engage in the discussion and attend the events which are being put on to discuss it. (You can find dates and locations in the Good Returns diary here).
The story which has intrigued us is changes at Kepa. The group is putting up fees and putting pressure on its mortgage members to send insurance business to its members. Afterall groups like Kepa essentially survive on the healthy over-ride commissions that life companies pay to them.
While these two changes are significant, what all advisers need to be aware of is how the group can arbitrarily make changes to its contract with members. It's probably a question all advisers should check out with their own groups.
It will be interesting to see what happens to Kepa's mortgage business following these changes. Other groups report they have had a few phone calls. Maybe we will see another group created? Watch this space!