Importance of Broker-Planner Relationships – Oct 25

Hope for the best, plan for the worst: SMSFs, real-world insurance claims, and why every mortgage broker needs a broker-planner relationship to best service their clients – by Hamish Ferguson

Mortgage broking is a team sport. In our October session I walked through three topics that keep showing up in joint broker–planner work: self-managed super funds (SMSFs) and risk, insurance claims that go sideways, and how a tight broker–planner partnership protects clients and your reputation.

The aim was practical takeaways you can apply on your next file – today.

1) SMSFs: one fund, one strategy – so plan for the worst as well as the best

We discussed a couple moving from retail super into an SMSF to buy a commercial property. He’s an experienced property investor with a higher risk appetite; she’s more conservative. The catch? An SMSF needs a single investment strategy for the whole fund – you can’t “split” risk profiles the way you can across separate retail/industry accounts.

The ATO is explicit: trustees must formulate, give effect to, and regularly review an investment strategy considering risk, return, diversification, liquidity and insurance needs; auditors look for evidence of this, and report serious breaches to the ATO.

That’s why our modelling bakes in buffers and “what-ifs.” In this case, halfway through the SMSF process the higher-income spouse developed RSI and may need a lower-paid role. We stress-tested contributions, cash flow, and loan covenants under a reduced income scenario before recommending next steps.

This isn’t pessimism – it’s duty of care. ASIC also reminds advisers to assess whether moving from an APRA-regulated fund into an SMSF is genuinely in the client’s best interests, including capability, costs and time commitment.

Broker takeaway: when an SMSF purchase (especially business real property) is on the table, help the adviser with any cash-flow buffer assumptions you may have. A loan that works only in “everything goes right” mode isn’t a strategy – it’s wishful thinking.

For context, industry commentary frequently highlights concentration risk – think single property exposure – and the need to evidence how the fund will manage liquidity and diversification over time. This needs to be carefully explained to a client so that they understand not just the positives but the weaknesses as well.

2) Insurance claims: why “tell us early” isn’t just nice to have

We unpacked a long-term client who went self-employed in 2016, developed a health condition in 2017, and kept powering on without medical certification. Years later, we’re reconstructing the claim history with multiple doctors to establish a valid commencement date. It’s doable – but hard.

Income protection benefits generally depend on being unable to work due to illness or injury, with payment conditions tied to pre-disability earnings and medical evidence. AFCA’s guidance and Moneysmart’s consumer materials both underline the role of doctor certification, policy waiting periods and documentation. Gaps here are a common reason for disputes and delays.

Best practice for brokers (and your clients):

• Nudge clients to update their adviser when changing employment basis (PAYG → self-employed) or duties, and at the first sign of a health event that may affect capacity to work. Early medical notes are gold later.
  
• Keep income verification tidy. Self-employed clients often need consistent financials to substantiate pre-disability earnings. If a claim is declined, structured appeals rely on clean documentation.

Broker takeaway: a quick “any changes to health, job, or duties since we last spoke?” in your review calls can save your client months of claim pain – and save you from being dragged into a preventable dispute.

3) Why every broker should have a planner on speed-dial (and visa-versa)

Two stories made the point. First, a medically retired client on insurance benefits sought a second opinion on a plan that assumed he’d secure a $1m construction facility. No one had checked credit policy reality for someone living on claim payments. Outcome: a beautiful financial strategy with a broken hinge.

Second, a client moved to us because he wanted one point of project leadership. His previous “under-one-roof” firm had broking and planning – but they weren’t talking. He felt stuck in the middle, re-briefing each side.

What good looks like: decide who is “head contractor” on the client’s overall strategy, set communication rules early, and test lending feasibility before advice relies on it. The MFAA also stresses the importance of due diligence and robust third-party relationships—because your partners become part of your brand.

Broker takeaway: make the broker-planner referral two-way and pragmatic. Before an Adviser takes lending into a Statement of Advice, invite a quick scenario check (serviceability, policy hurdles, cash-out rules, LMI appetite). It’s faster than re-papering a client’s life later.

Who this training is for—and why it matters now

This monthly session is open to all finance and mortgage broking professionals who want sharper, real-world insight into financial planning themes that intersect with lending.

Practical next steps for brokers

• SMSFs: if a client mentions “SMSF to buy a property, put them in contact with a financial adviser who is accredited to advise on SMSF’s. Not all can.

• Insurance: add a line to your fact-finds and annual reviews: “Any change to health, duties, hours or employment basis since last time?” Encourage early GP notes if capacity is affected.

• Partnerships: nominate a single “project lead” with referral partners. The right planner relationship compounds client trust and referral flow.

Join us next month

If you’re a broker or finance professional who wants to build long term relationships with your clients and possibly increase your referrals, these sessions are for you. Book a quick chat or email the team to get on the invite list and share topics you’d like covered next.