Young mortgage brokers the next gen of advisors?

Young mortgage brokers the next gen of advisors?

Young mortgage brokers the next gen of advisors?

These days any "schmuck" -- young or old -- can call themselves a financial advisor, argues an Ontario-based planner, in reaction to an Australian survey finding young mortgage brokers are increasingly tabbing financial advice onto their offerings.

“You couldn’t call yourself a dentist without going to dental school ... but anyone can call themselves a financial advisor,” says Kevin Cahill, certified financial planner with Canadian Legacy Builder in Guelph. “I am very adamant that unless you have your CFP (the international certification), you are not a financial planner.”

The Young Broker of the Year ranking survey - conducted by The Adviser publication - indicates that 47 per cent of respondents under 30 years old are now offering financial planning services, up from 27 per cent in 2012, with many looking to acquire RG146 compliancy – the minimum training required to sell financial products in Australia. The study also found that 13 per cent of respondents, who are not presently selling financial advice, plan to get certified to do so within the next year.   

“That’s the real risk right there, if you’re dealing with an undesignated person,” said Dean Paley, a fee-only advisor and certified general accountant in Burlington. “They may not be fully versed nor have in-depth knowledge, if they are not dealing with it (the subject) day in and day out.” (Continued on page 2)

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  • Lynda Weinrib 2013-11-08 10:21:15 AM
    In my opinion, any designation is only a starting point in gaining knowledge. And most designations, just like a BA, begin with minimal requirements. It is only through experience you learn to apply the theory learned in the courses - whether they were at University, at college or from an online course -to real-life situations so that you can actually help clients.
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  • Jim R 2013-11-09 11:03:05 AM
    Mortgage Brokers have an incentive for leverage investing.More debt for clients may not be in the best interest for the client. Broker gets paid for mortgage, paid for investment, Govt gets taxes for investment income and client takes all the risk of losing his house.
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  • JSydneyH 2013-11-14 8:03:20 AM
    Interesting comments. I personally (as a mortgage broker and financial coach) have had to rescue people from an overzealous CFP who leveraged their real estate to the point they were about to lose their house.

    So I argue that anyone holding an MFDA or IIROC designation not be permitted to become a licensed mortgage agent in the province to prevent that from happening.

    The CFP designation has become so watered down and meaningless that it is irrelevant. If every bank employee has it and we know they provide only bank specific advice to their customers, so why carry the designation?
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