EDITORIAL

Time to rethink your business

This issue has been a challenge to put together as much of it has been rewritten over the past couple of weeks.

The original editorial painted a positive picture of the year ahead. Why the use of mortgage advisers would continue to grow and how non-banks are increasingly becoming more important.

Those things are still true, but also advisers, like many other businesses, are having to review their operations.

It’s exactly the same for us as publishers. When the printer was closed down as it was deemed to be a non-essential service, we are moving to digital publishing.

It’s something we have played with previously but is now a reality. I would value your feedback on how you have found this and any thing we should change. You can email your thoughts to philip@tmmonline.nz

It’s the same for mortgage advisers too. With the housing market stopping dead in its tracks there is next to no new mortgages being written.

For advisers who have built their business on upfront commissions, their income has dried up. It will be pretty hard to live on $150 for each remix done; and we understand there is no revenue when a borrower chooses to do down the repayment deferral option.

Interestingly, as we report in the lead story, ANZ isn’t planning to change its remuneration model. It will be interesting to see if there is a shift towards lenders which pay trail once we get through this lockdown.

During this lockdown period much of the regulatory change that was happening in financial services has been delayed. Transitional licensing has been pushed back a year.

That is unfortunate as it gives people who had not engaged in the process sufficiently more time to procrastinate.

Many players have been late to the party in announcing what their plans were for the new environment. The biggest player, NZ Financial Services Group, only announced it’s plans last month when we were halfway through transitional licensing. Newpark, which has more than 150 members, also changed its thinking around FAPs late in the piece.

It’s a shame that these regulatory changes are now going to drag on for even longer. But at least there is time to make some good decisions.

Stay safe out there.

Philip Macalister Publisher

PUBLISHER: Philip Macalister

SUBEDITOR: Dawn Adams

SENIOR WRITERS: Miriam Bell, Daniel Dunkley

CONTRIBUTORS: Susan Edmunds, Joanna Jefferies, Michael Lang, Paul Watkins, Steve Wright, Adrienne Church

GRAPHIC DESIGN: Amy Bennie, Samantha Garnier

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