sector. The software firm Intelliflo in their E-Adviser index believes tech adoption is the “make or break factor” for future success of advisory businesses. The cynic might say, well they would, wouldn’t they? However, studies have shown the adoption of the right technology to complement the values, vision and culture of a business will improve it, both in terms of efficiency, client relationships, and overall profitability to name but a few. AI is obviously the current tech darling, as it offers opportunities to automate tasks, manage data and comply with regulation, thus, potentially allowing time for more client interaction. You can find a wealth of information and some useful resources about AI, including a video from our recent webinar, on our new technology hub here. Next, we need to consider regulation. The introduction of Consumer Duty has redefined the boundaries here, and I think it is fair to say that everyone involved in the advice process is, and has been, affected by it. There are some significant landmarks for Consumer Duty in 2024, in terms of reporting and understanding the process for the FCA. We have recently launched a new Paradigm On Film video on this topic, in which we discuss this in more detail. We’ve also recently launched our new eBook on ‘Life under the Duty’, which is also well worth a read. It is not just regulation through the regulatory bodies which will have an impact in the private rental sector if we have a Labour Government, I am sure they will be keen to pass their Private Renters’ Charter if the Conservatives’ Renters (Reform) Bill has not been passed before then. Although these bills are very similar, there are some notable differences for advisers and landlords to be aware of. Therefore, it is essential, now more than ever, to stay informed on the latest legislative news as we move through the year. Many of these topics are covered at our upcoming events and webinars, please take a look here to see our upcoming events which may add value and help with 05 SPRING MORTGAGE NEWSLETTER attaining your CPD. Finally, we have costs, the simple act of running a business, as you will know, has increased immeasurably in terms of office costs, staffing costs and technical resources needed to run the business. It is great to read reports that suggest four in ten brokers are planning to grow their firms this year*, according to a recent report from Paragon, but if you read into the report attracting new staff is difficult, time-consuming and costly. However, such costs I would suggest in the main have not been passed on to clients, making profitability harder for firms to achieve. I have not heard of firms increasing their fees to clients whether it be in new business or for remortgages or Product Transfers. Its interesting when one looks at the Wealth Management industry in terms of costs and regulation and fees, due to RDR, MIFID II and Consumer Duty there is a definite drive down on fees impacting wealth firms, but also because this regulation has put the spotlight on areas clients were being charged for but not receiving. This is not the case in mortgages, where advice and transaction result in outcomes which are received by the client. It would be great to see more Lenders take the costs to their major - and at times only - distribution source much more seriously, and reward accordingly given the economic backdrop advisers are working in. But back to this edition, once again we have tried to source articles and ideas you will enjoy reading about and find of interest, our contributors range from major banks to Building Societies and the Green Finance Institute, we also have some excellent contributions on D&I which I would encourage you to read. Once again, we would love to hear your feedback, and hope you enjoy reading this edition. *Data firm BVA BDRC surveyed 337 mortgage intermediaries in November 2023 for Paragon Bank.
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