FBAA to set up broker association in New Zealand

The Finance Brokers Association of Australia, which represents more than 11,000 brokers, plans to expand its operations into New Zealand after members approved the move at its AGM on the Gold Coast.

The FBAA is one of two peak industry bodies for mortgage brokers in Australia and has a membership of 11,600 mortgage and finance brokers.

FBAA managing director Peter White (pictured above) told NZ Adviser that the FBAA would provide a dedicated membership organisation for New Zealand mortgage advisers. It would draw on its skill set developed in Australia, focusing on local needs and requirements.

“We plan to bring a whole host of events and value-add educational components, as well as new opportunities New Zealand advisers may not have seen in the past, that will help them grow their business and grow their opportunities with their customers,” White said.

At the FBAA 2023 annual general meeting held on Thursday, November 2, FBAA members voted in favour of the organisation establishing a business presence in New Zealand, with voting exceeding the required minimum 75% threshold.

Under a separate resolution, members voted in favour of the Finance Brokers Association of Australasia Limited to be named as the corporate entity. The New Zealand-based operation is to  operate under a separate brand, details of which are still to be confirmed.

White said that the FBAA had established a positive working relationship with the Financial Markets Authority and would look to support key initiatives and maintain a strong regulatory focus.

He said the New Zealand member organisation would focus on building awareness, maintaining appropriate levels of promotion, engaging with politicians and regulators and increasing adviser market share.

“When we’ve started discussing this with members, there are many things that have come to us that create greater opportunities for advisers in New Zealand,” White said. “The end result of this is to grow the market share of New Zealand mortgage advisers.”

Dedicated industry body to add value, says FBAA

Financial Advice New Zealand has held a longstanding role as the New Zealand membership organisation for financial advisers, including mortgage advisers.

White said that the new member organisation would be dedicated to mortgage advisers’ unique challenges and goals.

“At this point in time, what we’re focused on is providing specialist support and guidance and advice for mortgage advisers,” he said.

Initial expansion funded by existing FBAA members

White confirmed that the initial expansion into New Zealand would be funded by existing FBAA members and said that it had taken a “conservative approach” to what that would look like.

Expectations are that the expansion will “greatly exceed expectations”, and come in under budget, he said.

“We’re very fortunate in that we’re leveraging off the infrastructure, technology, process and systems that we already have,” White said.

The New Zealand membership organisation is expected to be operational in early to mid-February, 2024.

White said a local country manager would be appointed to oversee the New Zealand membership, and a range of initiatives undertaken to ensure the organisation was focused on the New Zealand market.

Will having a  member organisation dedicated to New Zealand mortgage advisers benefit the industry? Share your thoughts in the comments section below.