Homebank calls on brokers to start TV campaign
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Homebank Financial Services, a Northampton based national mortgage and general insurance broker, is calling on brokers to launch a television campaign to highlight the importance of independent financial advice.
It is asking larger firms to help fund a campaign to make the public aware of the importance of independent advice.
George Dodds, managing director of Homebank, says there has been a lot of talk about the Mortgage Market Review and the RDR and the impact they will have on the industry, but his overriding concern is the ongoing destruction of independent advice.
He says: More and more people are falling into the hands of providers for whom advice can only ever be about their own product range. With so many intermediaries leaving the industry as the cost of being an adviser continues to rise, it means that only those with the deepest pockets, the providers, will be left standing.
“What terrifies me is that the public is already being brainwashed into believing that advice from a product provider is really advice. I have many examples of inappropriate products being sold direct to the public by providers and I know that if a regulated adviser firm audited by the FSA had offered the same ’advice’, it would have had its permissions revoked and fines imposed.
“Leaving aside the different interpretations of how advice differs, the main issue is the poor British public being forced to accept what is little more than product placement instead of genuine advice based upon filling a real need from a whole of market choice of products. As a consequence, without any real incentive to compete, product providers are going to become flabbier and their products will represent more the needs of the provider and less those of the customer.”
He says he is prepared to put his hand in his pocket to help fund a public awareness campaign including TV advertisements and would like to see other larger advice firms contribute to a fighting fund under independent control.
He adds: “If we can persuade our trade bodies to get onboard and lead this, perhaps between us we can persuade the public that real advice has nothing to do with what banks and others are passing off and everything to do with comprehensive product research based on established needs.”
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Readers' comments (7)
Swanny | 25 Oct 2010 2:07 pm
It would be great if this could be done.
Maybe the networks should also donate also
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Anonymous | 25 Oct 2010 3:09 pm
In the form of what brand? How will this campaign reach those that don't understand the market and make an impact?
You are up against huge marketing budgets and recognised and trusted brands like HSBC and ING.
With no clear brand behind you it would be a waste of money.
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Anonymous | 25 Oct 2010 3:43 pm
sounds good- but the bottom line is, the banks are in charge the FSA do what the banks say & and most bank's hate brokers as they seem them as cost rather than a benefit!
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Tokiojo | 25 Oct 2010 5:05 pm
And anyway I don't mean to be defeatist....but you won't be able to get the advert approved
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Anonymous | 26 Oct 2010 11:28 am
I agree with all of this in theory but as pointed out in other comments you cannot do this without creating a brand that you can advertise to make it identifiable to consumers. This is something the industry has always struggled with. Big advice firms dont want to give up their brand and small firms believe they have a brand to protect when really they dont. There is a solution to this, create a kite mark for quality advice and advertise that to make it clear to consumers that only firms displaying this mark of quality represent true independant advice. Then charge firms to renew the kitemark annually with all money going in to advertising the 'brand' and increasing consumer awareness of what it represents. Why as an industry do we insist on making things complicated!!
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industry stalwart | 26 Oct 2010 11:58 am
Anon @ 11.28 This is a great idea, but in an ideal world we should already have the kitemark (ie FSA regulated!). We know that being regulated isn't enough so some serious thought needs to go into what the kitemark would be - maybe something to lobby the new CPMA for??
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Anonymous | 26 Oct 2010 12:40 pm
industry atandard @11.58. I agree that regulation should achieve this status but it doesnt for a number of reasons. Firstly, the FSA regulates too many parts of the industry so there is no distinction between adviser types, I fear the CPMA wont be that different on this.
Secondly, the regulator has to represent all parties involved so it wouldnt really be appropriate for them to champion the cause of one area over another.
Finally the FSA are not commercially aware so I would never trust them to be able to do something like this properly.
I would see this idea as something that was privately run and funded by the members but on a non-profit basis. There would obviously need to be a very close relationship with the regulator in terms of the advertising but apart from that it needs to focus on effective marketing utilising all the new mediums such as socialsite advertising etc to reach the next generation of customers before the banks get hold of them.
It would need to become a powerful brand in its own right, not constrained by how the adviser was regulated allowing both DA and network members to participate.
If anyone is serious about setting something like this up I would be happy to talk to them.
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