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Commission hikes show banks more reliant on brokers, analyst says

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Julia Corderoy | 05 Sep 2014, 08:27 AM Agree 0
Lenders choose to pass more of their “tailwind” savings onto brokers rather than to consumers with rate cuts
  • hellsbells | 05 Sep 2014, 09:14 AM Agree 0
    and dont forget that the huge savings the banks are making as our grandfathered books dwindle away. Remember the dire straits the banks were in during the GFC and the justification for why they had to drop the commission rates....

    now if that wasn't collusion I don't know what is.... where was the ACCC on this point
  • Ed Ridge | 05 Sep 2014, 09:16 AM Agree 0
    Now if we can just get our aggregators and industry bodies to realise the tide has turned and NOW is the time to address clawbacks, conflict with branches etc. Why do you think the MFAA is now letting brokers onto the board, because the current directors are not up to the next step in our evolution, lets see if any brokers are to the challenge.
  • Clarke Kent | 05 Sep 2014, 09:16 AM Agree 0
    No salaries, no bonus, no sick leave, no super, no holidays, no leave loading.

    Why wouldn't Banks' want to pay more, we are cheap labour and only get paid on successful outcomes!
  • Stomper | 05 Sep 2014, 09:50 AM Agree 0
    Hey Ed, sorry but your aggregator is owned by the Banks, and your industry body is also bought and paid for by the banks too. Good luck with that mate.
  • Cynical | 05 Sep 2014, 11:08 AM Agree 0
    The Aggregators make their profits of our backs & no doubt are required to return some form of dividend back to the owners in return for their investment....you tell me theres no conflict in the whole scam or Bank ownership of Aggregators!!
  • Stomper | 05 Sep 2014, 01:06 PM Agree 0
    Hey Cynical your on the money. There are back room deals done between them that you have no idea about. Extra comms for extra volumes. It's been going on for years ever since the brokers where herded to the aggregators BY the banks. All to control the flow of volume and create a distribution channel that suits the needs of the banks. That's why its extremely difficult for smaller lenders to win market share. it's not just about pricing, its about policies, valuation control (Valex) and all the other cogs that make up the machine.
  • Bottom Line | 08 Sep 2014, 11:23 AM Agree 0
    Upfronts have 'almost' got back to their 2007 levels. Trail still at 0.15% compared to 0.25%in 2007. Not many industries are being paid at rates lower than that received 7 years ago - making these corrections purely catch-up.
    Strange thing is....my licence fee keeps increasing each year, my COSL from $200 to $380 despite never having a complaint, PI the same, MFAA etc....maybe they aren't aware commissions are lower than they were 7 years ago.
    How do I become a compulsorily paid 'middle man'?
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