Canopy Private, a new non-aligned wealth management firm combining mortgage broking and financial advice, launched in Sydney this month.
The practice is headed up by Christopher Bates, who says he will split his focus equally between the two areas, with the mortgage broking especially targeted at property investors.
“I’m approaching it as holistic advice, but part of that is mortgage. Every client onboard should be, hopefully, having that done as well.
“In reality, the rates that I can do are cheaper than any mortgage broker – I’ll be rebating the ongoing commissions and the upfront to them,” he says.
Bates emphasises that this fee for service approach is adopted across the business, which he believes is a key differentiator. “We rebate all commissions on all recommended products. I just set up a retainer, so that clients pay a flat fee for the advice.”
Why now?
Asked why he has chosen to launch a hybrid mortgage broking / financial planning business right now, Bates points to a variety of factors including regulatory reform and the wider perception of financial services.
“The financial planning sector is in a more mature phase, everything is getting commoditised.
“I think that over the next 10 years, we’re seeing the death of the old type of financial planning businesses, of those who say ‘we just do insurance’ or ‘we just do superannuation’. Clients want a lot more now,” Bates says.
“Unless you’re providing some type of advice that’s looking at their life holistically, you’re going to find it very hard to work in this post-Future of Financial Advice (FoFA) world – that’s why I think it’s a good time.”
Referring to the image problem plaguing many financial planners, especially those aligned with banks, he says: “You have to be completely client-centric. Clients appreciate that, they already are aware of all the conflicts. I’m passionate about unconflicted financial advice,” Bates says.
All in the family
A more practical need to keep more business in-house was also behind Bates’ decision to pursue both mortgage broking and financial planning under the one roof – the former being licensed by Connect, the latter by Madison Financial Group.
Having worked with them for three years, he says: “I was referring too much business to mortgage brokers, before thinking ‘I understand this process, and how much value we can add there’”.
Scaled advice or holistic
Bates says he can also scale the advice where necessary, and expects a substantial proportion of his earlier clients will initially opt for advice restricted to their mortgage or other specific areas.
“But when we provide good service there, then more than likely they’ll become a full planning client in two or three years’ time.”
