May 2, 2011.

The mortgage aggregator, Vow Financial, is giving its brokers another opportunity to diversify their range of services to clients and develop new income streams by moving into the financial services space with the setting up of Vow Wealth Management.

Vow Wealth, which has opened for business under the stewardship of newly appointed National Sales Manager Justin Dale, is a joint venture with a successful financial planning firm. But longer term the aim is for Vow Wealth to have its own financial planning dealer's licence.

Vow chief executive officer Tim Brown says: "Vow has always planned to push into financial planning, especially around the property sector, and Vow Wealth allows us to do this.

"It will enable our brokers, if they chose to do so, to fill in all those voids involving property transactions, such as risk insurance, investment advice and superannuation; in short, our brokers will be able to comprehensively build and protect their clients' assets while protecting their client from other cross-sell opportunities."

Brown envisages Vow Wealth engaging with its brokers at three levels:

1. Straight referrals: About 70% of Vow brokers will never be financial planners and will continue to focus on home mortgages. They will offer referral advice for their clients.
2. Limited financial planning advice: About 20% of brokers will want to offer some financial planning advice, such as risk insurance, but not the full range of services. These brokers will be RG146 compliant.
3. Complete financial planning advice. About 10% of brokers want to become financial planners and Vow Wealth wants to help them go on that journey to become fully qualified.

Brown says being able to offer financial services with property as its focus was always on Vow's agenda. "But what has surprised me as I talked to our brokers was how many of them really wanted to get into this field to diversify their businesses and develop other revenue streams.

"There's also been a sentiment among brokers that financial planners have been encroaching on their territory, and as such we believe this strategy will help brokers quarantine their clients."

The Vow Wealth initiative comes hard on the heels of Vow's recent decision to give its brokers the opportunity to offer clients vehicle and equipment financing.