Financial analysts are largely unified in the belief that a vast array of factors combined to create the recent financial crash - the largest since the infamous 1930s Great Depression. Whilst a single reason or event can't be pinned down, a perfect storm of risky 'casino banking', fraudulent practices, property price bubbles and competitive sub-prime lending all combined (with a few others as well) to bring about a crash - the effects of which are still being felt many years later.
Intelliflo has today released its free Mortgage Market Review (MMR) ‘MOT’. The MOT is a practical guide aimed at helping mortgage advisers identify the pain points they may have experienced following the implementation of the MMR, and provides easy to follow steps on how these issues can be overcome.
With the recent transformations in the mortgage market, this document will serve as an extremely useful tool for any mortgage adviser wishing to assess the impact the MMR has had on their business.
On 18 September Scotland will decide whether it wants to remain as part of the UK or go it alone. With conflicting information about what this will mean for the people living there, it’s hard to call which way they will vote but it’s fair to say there appears to be more support for leaving the UK than was predicted by politicians and pollsters this time last year.
It’s been just over a month since the Mortgage Market Review (MMR) conduct of business reform was launched and much has been made in both the national and trade press about the possible effects. What impact has MMR had over this period?
The impact on financial advisers
Technology has completely restructured the modern business landscape. According to a recent report from Executives Online, 80 per cent of the UK’s executive-level workers feel that advancements in technology have changed the way in which their companies operate. Huge improvements have been made across the board and there are plenty of beneficiaries.
The same study also found that the financial sector is feeling the shift more than most. With multi-channel engagement and process efficiency at the top of most business owners’ priority lists these days, web-based financial management systems are proving particularly useful – and there are plenty of reasons why.
With many so-called ‘DIY’ financial planning tools available online today, plus last year’s RDR changes to fee structures, some consumers might be persuaded to think that they can manage their own investments, savings and pension pots without the need for professional intervention.
Consequently, it is absolutely vital that financial advisers find ways to highlight their worth and clearly explain to clients or prospects the type of return they can expect from their investment in you.
By Dave Chessell, Commerical Director
With the dust settling on the RDR and the changes it’s brought to the industry, it’s no surprise that the FSA has reported there are 20 per cent fewer advisers operating now than at the end of 2012.
A new era of professionalism
A year on from RDR, was it the storm advisory firms thought it would be? We caught up with some of our clients to see how they had adapted their businesses and to gauge their thoughts on the post-RDR landscape.
by Dave Chessell, Chief Commercial Officer
We recently asked advisers what their top concerns were in terms of running their businesses. The response put compliance and RMAR reporting top of the list. Luckily, the FCA has announced that they plan to simplify RMAR reporting, cutting down on the frequency and detail they require, which should help go some way to making advisers’ lives easier in the future.
91% of mortgage advisers feel prepared for the MMR
With the Mortgage Market Review (MMR) only a month away, mortgage advisers are feeling optimistic about what these changes will bring to their business. Our latest research reveals that 91% of advisers feel they are either prepared or very prepared for the new regulatory requirements. In fact, 72% of the mortgage advisers surveyed feel that the MMR will be positive for their business.
We conducted a survey of 100 mortgage advisers across the UK to find out how ready they felt for the MMR. While the majority seemed optimistic, 34% of advisers named increasing admin burdens as their biggest concern, with 11% worrying that the MMR would negatively impact sales. Other concerns included an increase in compliance costs (6%) and longer working hours (5%).
Our findings showed that mortgage advisers are well aware of the responsibility they have to provide lenders with detailed client profiles. In preparation for these new requirements, which include carrying out in depth scenario planning and ‘rate shock’ tests, the survey found that the most common changes mortgage advisers have implemented are to process (20%) and training (28%).
Our research also found that spending on technology has been relatively low in order to prepare for the new regulations, with 72% of advisers having spent £3,000 or less, and 4% spending up to £10,000. Despite this, 94% of mortgage advisers are confident or very confident that their systems will allow them to evidence compliance post the MMR. This highlights the fact that effective technology in this sector can be low cost.
Whilst it doesn’t have to break the bank, having the right technology systems in place will be hugely important when it comes to efficiently complying with the new requirements. Appropriate software can help to alleviate the admin burdens brought on by the MMR, speeding up processes, improving accuracy and reducing unnecessary duplication. Advisers who don’t plan to use technology to help with the increased administrative tasks run the risk of having to put in extra man hours, which increases operational risk, and could also reduce the amount of quality face to face time they spend with clients.
To see the full results of our research and accompanying analysis, you can download our White Paper below
