Firm delves into property advice

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Boutique financial planning licensee HNW Planning is now covered by their PI insurance policy to cover credit and property investment advice services as well as financial planning.

HNW says that while many planning groups are struggling to come to terms with FoFA and changes to their income, HNW is using it as a business opportunity and a chance to diversify. Its 40 financial planners will use Forrester Cohen’s IRESTS platform to source property and manage any transactions. They will also gain expertise through PIAA property investment advice training.

IRESTS supports fee for service via an escrow account for advisers and referrers. The platform has separated the relationship between the property adviser and the developer in an attempt to remove the conflict of interest. HNW will now be able to provide expert opinion in their SOA process in the same way that advisers normally provide opinion on insurance, investment and superannuation.

The platform supports advice for selected investment-grade property with advice-standard tools and reports.

HNW managing director Rob Cumming says that it is important to be able to provide advice in the areas where clients want the services.

“There’s a beautiful and logical symmetry to it,” he said about the arrangement.

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  • GAB on 5/09/2013 9:40:51 AM

    Question 2 is a good one. Assuming there is commission which sounds like there could the geared component commission or percentage based free, like margin loans?

    Obviously property gearing is largely exempt from FoFA and anything still goes.

  • Rob Cumming on 5/09/2013 9:05:38 AM

    Hi Matthew;
    1. Will be client/adviser driven. Importantly this PI takes the adviser away from their only option being new or off-plan referral fees. Adviser might also advise on an old fibro for a young couple, or whether to keep Grandma's property when she is put into high care... with advice being alongside other related and often interconnected concerns that also require financial advice.
    2. Will be client/adviser driven. So long as any fees derived in whatever manner are disclosed and passed via AFSL and are transparent and disclosed to clients .... and of course that related state rules/laws are adhered to.
    Advisers will be required to have appropriate training and maintain professional membership.

  • Matthew Ross on 4/09/2013 7:28:10 PM

    Curious to know:

    1. What % of properties recommended are off the plan versus established properties.
    2. Does HNW receive a commission from property developers when clients invest?

    Any chance of getting this information Hilary?

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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