Westpac trail decision highlights importance of industry resilience

The managing director of the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) says while Westpac’s decision to restructure commissions wasn’t the preferred option, he is pleased the bank extended the time period for implementation of the changes.

But Peter White AM also said that advisers should get used to change and be ready to adapt. 

“After more than 40 years in this industry, I know that change is constant, and there will be more changes in the future, from lenders, regulators and legislators.”

He said the key to handling change is resilience, and this comes from building the industry’s strength, which is a core goal of FAMNZ.

“Finance and mortgage advisers do a great job in providing excellent service, but we must continue to raise our profile and increase our market share, because these two factors increase our resilience to change and give us the strength to fight for our industry when needed.”

Mr White said lessons can be learnt from Australia when in 2019, shock recommendations from the Hayne Royal Commission, if implemented, would have devastated the finance and mortgage broking industry there.

“The only reason both the Government and Opposition at the time rejected these terrible recommendations was because our industry had over 60 per cent market share at the time, and the sister organisation to FAMNZ in Australia, the FBAA, had strong relationships with politicians from all sides and mounted a very vocal publicity campaign.”

However he said that out of this came another change for Australian brokers, Best Interests Duty, which has proven to be very positive.

“As we grow our market share and continue to lift our profile, we will have the strength to adapt to changes we accept and fight for changes that are detrimental.”

Mr White again called on advisers to join FAMNZ because “our industry strength and power is working together.”

“Don’t sit on the sidelines and watch; work with us and contribute, and every adviser will benefit.”