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ASIC weighs in on YourShare controversy

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Australian Broker | 18 Jun 2014, 07:43 AM Agree 0
Brokers have been outspoken about goads by a cash-back company for clients to leave their brokers; what do the regulatory bodies say?
  • Darren | 18 Jun 2014, 09:05 AM Agree 0
    As Mortgage Brokers we need to FOCUS on what we bring the client and HOW we present ourselves in a broad manner. Businesses like YourShare.com.au may think that their USP (Unique Selling Point) is clever but they are only going to create untrustworthiness within the broker industry as a whole and shoot themselves in the foot in the process. We all need to work together under a common goal and start supporting a professional Mortgage Broker image.
  • Papery | 18 Jun 2014, 09:37 AM Agree 0
    I want to know which Lenders/Aggregators are allowing a simple renomination of a broker details without an application of some form.
  • Clarke Kent | 18 Jun 2014, 09:52 AM Agree 0
    And of course the last thing we will ever see is ASIC take a position to side with brokers' and this is supported by their lack of interest here on Yourshare.com.au.

    My view was and still remains that the model is doomed for failure! If one buys on price one also dies on it too (how could we forget Refund Home Loans!)
  • Internet/phone Only | 18 Jun 2014, 11:37 AM Agree 0
    I just called them to get cash back on my mortgage. They said that they need to refinance me for that to happen. They don't have anyone to come and visit me, and I can't go to them. They said that it's all done over the phone and internet. I can't wait for them to call me back to explain the process further. I am interested to know how they sight original payslips, original ID to ensure that there is no money laundering or terrorist funding. Hey, the rebels in Iraq need all the money they can get to kill infidels. The banks must be desperate allowing such organisations represent them. As a broker, I must sight and certify all key documents.
  • Shirley Morcilla | 18 Jun 2014, 11:42 AM Agree 0
    I remember this Yourshare company is also poaching clients in the insurance industry. One client if mine is being approached to be a member of this group and my commission was accordingly transferred to the client. I reported it to the insurance provider but they played down on it or not make any comment.
    It's really so unfair.
  • BradQ | 18 Jun 2014, 12:59 PM Agree 0
    Absolutely no integrity. Yep, lets just pull trail away from honest hard working people... to make money for ourselves.... scum I say
  • Papery | 18 Jun 2014, 01:22 PM Agree 0
    Hmmmm.... I wonder if this crowd are MFAA/FBAA members .....
  • Dave Robinson | 18 Jun 2014, 03:18 PM Agree 0
    Couldn't find any listing of their membership to any industry bodies all I could find was a notification to the ASX that their listed parent company had lost $7m dollars....so far!!!
  • Service Unlimited | 19 Jun 2014, 09:19 AM Agree 0
    Recently had to travel to same client three times and now he wants me to travel back out to witness mortgage docs, 2 hr round trip. Saturday I have to travel 2 hours to visit clients to fit in with their busy work schedule.
    No choice as I have to sight original docs.
  • Kram | 19 Jun 2014, 09:37 AM Agree 0
    The YourShare cash-back for mortgages model works on an assumed high-level commission return. It assumes a 0.15% trail (GST included?), with a 90% split to the broker (with aggregator on 10%). You take off a (random?) $75 fee, and halve the remainder, and that's what the "client" gets for their mortgage balance (once refinanced across to YourShare). These figures are from their web site, not my experience. They say 50% split on their site... but take off the $75, so it's a little bit less. They say "you" the client are probably paying fees "and commissions" to unknown brokers/representatives. Well, the customer doesn't pay commissions, and what's the theory behind the anonymous online experience, in terms of clients not just paying unknown representatives? Their model is noble, but as always the execution in these models is predatory due to the mixed messages to the client (ie. Commissions = bad, unless of course we and you are splitting it 50/50... sort of...). They seem just like Vanilla Loans, but more cashed up and able to present a better web presence?
  • Internet/Phone Only | 19 Jun 2014, 11:31 AM Agree 0
    YourShare called me back. They need me to have anyone from the wide list to certify my ID and then post the certified copies to them. This model is fraught with risk. Anyone these days can have a doctor/pharmacy stamp prepared. No one checks the legitimacy of the certifier. Brokers are heavily regulated and licensed, and we pay heavily for it (our cost of doing business which is not being recognised). These internet/phone only operators are the weakest link and very much open to fraud which will ultimately damage the entire broking industry. They call themselves brokers or online banks, and they NEVER sight original documents. How can ASIC, MFAA, their aggregator and the 30 banks/lenders they represent allow such risks to us all.
  • Silk | 10 Mar 2015, 11:19 AM Agree 0
    They are keeping the ongoing trail commission when they advertise that the fees are going back to client! well I haven't seen any rebates on client accounts yet, client who have come back and new ones who all say they had no idea they were leaving the FP service!
  • Lee | 22 Jun 2015, 03:14 PM Agree 0
    Very confusing, I don't think I would allow a person on the phone to take control of my super and Insurances, let alone my mortgage.
    I was quite surprised that they take $75.00 then 50% of all other commissions. Are they not the same as any other insurance broker or lender out there.
    You also relinquish the ability to ensure that your insurance is adequate and personalised for your situation as it changes in life. Not so sure about these guys!!! I don't think they are totally transparent.
  • Broker | 22 Jun 2015, 03:43 PM Agree 0
    I can't see many clients being too interested for the sake of what ....$200-$400 per year in rebates and no service or relationship.

    And if one of mine was, adios I say!
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