"If you're not qualified, keep schtum" - brokers on media commentators
The media are letting consumers down when they quote non-qualified and non-practising mortgage experts in mortgage-related articles, according to brokers, with one saying, “if you're not qualified, keep schtum”. Another suggested firms wheeling out non-qualified spokespeople would not meet the requirements of Consumer Duty.
Brokers also called for the qualifications of commentators to be revealed at the bottom of articles to reassure consumers and help them apply the appropriate level of weight to people quoted in mortgage articles.
According to Craig Fish, director at London-based Lodestone Mortgages & Protection: “Some so-called 'finance professionals' have a significant following and are often looked up to and relied upon for advice, when in reality all they are is a media commentator with no financial qualifications whatsoever. Simple solution: if you're not qualified, keep schtum.”
Michelle Lawson, director at Lawson Financial, shared much the same view: “It should be made clear in media articles whether the individuals being quoted are qualified to give advice, or whether the information is simply opinion-based. The media and social media are turning into dangerous places for incorrect information and second-rate advice by unqualified persons but the public seem to hang on, and potentially act on, this advice. The implications for anyone taking this onboard could be massively detrimental both financially and practically.”
Ranald Mitchell, director at Norwich-based broker, Charwin Private Clients agreed: “Consumers need protection from influencers and unqualified media opinions. Non-practising, non-qualified commentators should be exposed for what they are, so readers and audiences understand what authority they have on the subject matter. The power and influence that many media personalities have over their audiences can put the audience at risk, and suitable warnings for financial commentary should be shown with appropriate prominence. Meet Gary. Gary has 50,000 followers and says that ABC Bank is rubbish and that people should never use their products because they are expensive. Gary is not qualified to give mortgage advice. Gary has never worked in the mortgage industry.”
Meanwhile, Elliott Benson, owner at Sett Mortgages, said the media quoting non-qualified experts makes an already bad problem worse: "There are so many myths and untruths surrounding mortgages already without matters being confused further by quotes from non-qualified sources. If I had a single penny for every time I have to dispel some myth that a client had read online somewhere or heard from someone in the pub or a family member who bought over twenty years ago I would have retired to a private island about a month into my mortgage advisory career. There needs to be more factual information given from people in the industry who are qualified."
Bob Singh, founder at Chess Mortgages, delivered a similar verdict: "It would make perfect sense for journalists, unless suitably qualified themselves, to seek the advice of practising and qualified professionals in whatever subject matter being reported on. The public need to know the commentary is from someone who is well versed in financial matters so that they can choose to accept or reject the viewpoint. You would normally ask a doctor for medical advice and not the receptionist at the desk. There is a fine line between commentary and advice so the press need to extra careful as to the accuracy and context of the reporting."
Jamie Thompson, director at Jamie Thompson Mortgages, said over-zealous compliance regimes also played a role: “The problem arises because most financial services professionals are too timid to speak up and provide expert commentary as they are silenced by over-zealous compliance regimes, or at least they believe that to be the case. Most therefore choose to say nothing at all. Whereas the unqualified and unregulated have no repercussion or accountability and will happily spout whatever they fancy no matter how unqualified.”
For Gary Bush, financial adviser at the Potters Bar-based MortgageShop.com, the new Consumer Duty regime should give firms wheeling out non-qualified spokespeople pause for thought: "In light of the new Consumer Duty requirements, I think the FCA would be surprised to see anyone but practising financial advisers commenting on the mortgage market in the media. Commentators with a "general" interest in financial services don't have that "at the coal face" experience of trading practitioners. The mortgage market alters and changes so rapidly that it's impossible for someone on the sidelines to actually have a true grasp on the market, so leave it to those actually doing the work."
For Scott Taylor-Barr, financial adviser at Barnsdale Financial Management, the qualifications of people being quoted should reach beyond mortgage advice into all areas: "A simple note that qualifies people should apply to all "experts" in the media giving their views, whether that's a journalist specialising in the field being discussed, or a professional that is, or has, worked in the field in question. It then gives the public some insight into the level of weight they should apply to that person's views and words."
Austyn Johnson, founder at Mortgages For Actors, was bemused about the prevalence of non-qualified experts in the media given how easy it is to find sources who are qualified: “Please stop quoting people who have no idea what they are talking about, especially when there is easy access to intelligent, qualified individuals all over the place. If you quote piffle, it comes down on you, so don't do it.”
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