What is Wealth Market?

Mortgage Brokerage, Loan Market, is expanding its business with the introduction of a financial planning service, Wealth Market.

“This decision was not taken lightly given issues surrounding the industry in the past 12 months, however we believe it’s in the best interests of our clients and is consistent with other large mortgage brokers, including Mortgage Choice,” chairman of Loan Market, Sam White, said.

Loan Market has been operating in Australia for 20 years and has arranged $47billion of finance for its clients.

“Loan Market has its own Australian Credit License and operates a franchise model where franchisees are either authorised under the Loan Market’s credit license or have their own credit license.

“Our decision to create Wealth Market has been driven by the need to service customers. We believe it’s appropriate, when a broker is recommending to an individual to take out new debt, that they are made aware of the available insurance products that there to protect their family during times of hardship and tragedy.

“We believe that ensuring one’s income against unexpected life events is important for anyone to build wealth.

“Initially Wealth Market will focus on providing these insurance opportunities as well as an approved product list to advise their clients.”

Although owned by the White family, Loan Market is a separate entity with business interests independent to those of Ray White.

“Our advisers will not be recommending properties to our clients. It’s important to note that our approved product list will be structured in the same way as the leading financial planning dealerships. This negates the need to develop our own products in this space,” Mr White explains.

Wealth Market is due to launch before Christmas and is undergoing a rigorous planning and recruitment process:

  • Minimum qualifications: diploma of financial planning for insurance advice and simple investment advice, advanced diploma for more complex advice areas, with a preference for advisers who are degree or certified financial planner qualified
  • For complex financial planning areas, such as direct equities and SMSF, advisers will we require a minimum advanced diploma of financial services, and also an additional specialist accreditation as well as membership of an industry body.
  • Onboarding includes: Interview every adviser and conduct due diligence on their business before accepting a formal application
  • Sam White is confident ASIC approval will be forthcoming in the short term.

“We don’t want to exclude the areas of advice that may be suitable for certain clients, however we want to ensure we have the right people providing this advice.

“We will be able to assess quality control in every aspect of our business from recruitment, onboarding, education and advice,” Mr White concludes.

View a video of Sam White announcing Wealth Market here.