Broker interview: Asset finance broker talks best interests duty
- Best interests duty (BID) will likely become legislation for all consumer credit assistance providers
- We spoke with asset finance broker, Brendon Burrows for his perspective on best interests duty
- Brendon sees BID as a way of building trust and confidence with clients
As has been well established by now, the best interests duty (BID) came into effect for mortgage brokers on 1 January this year.
However, the government has announced that it is seeking to extend BID to all credit assistant providers, not just mortgage brokers. If passed, the proposals would take effect later this year.
We spoke to Connective asset finance broker, Brendon Burrows from On Call Finance to get his thoughts on BID and how he has used it to build his customer-base and solidify his reputation.
Tell me about yourself and your company?
I’m an asset finance broker first and foremost, but we do offer a whole range of finance assistance from commercial, lending, all the way to consumer. We also offer first homeowner applications, but it’s just one part of what we do. Our business has access to exclusive industry and wholesale products, sourcing financial solutions from a range of financial lenders.
What are your thoughts about the introduction of BID?
I see it as a benefit to the broker industry, because we have to act in the best interests of the customer. Banks do not, because they generally have one product suite to deliver. It builds trust with our customers and most of us have been doing that in our careers anyway.
Has it impacted the way you do business?
The only thing we had to get better at was keeping records in terms of the recommendations that we were making for the client and having those recorded so that we’ve also got proof that we’ve been doing the right thing.
Have you been using Mercury Nexus workflow for record keeping?
Absolutely. It’s a handy prompt to record in more of a prescriptive manner what you are doing. If you’re a broker, now you’ve got to define your steps and why you’re choosing certain products. Our role is not only to recommend products but educate the customer on why you’re recommending them, and the tools are there to help us streamline it all.
Have you heard of any other brokers who have reacted to BID in different ways?
I’m sure there are brokers out there who are conflicted, or they might be set in their ways. I think there’s always a fair bit of fear when leading up to these kinds of things, and then when they come on, everyone thinks it’s not really such a big deal.
What advice would you give to asset finance brokers who may be wary of BID?
All it’s asking is for you to record why you’re making certain recommendations. It’s pretty basic stuff, and it’s the right thing to do.
We’re not being asked to do any more than what we should be doing in the first place.
And don’t forget, you can download your comprehensive BID guide here.