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Will the big four scrap commissions? Broker associations respond

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Miklos Bolza | 13 Mar 2017, 08:25 AM Agree 0
The MFAA and FBAA have returned fire amidst claims the major banks have discussed capping upfront and eliminating trail
  • Concerned Broker | 13 Mar 2017, 09:49 AM Agree 0
    I see this as a prelude to the actual bad news! The banks have made up their mind and just trying to reduce the impact on the broker community by "leaking" this news. It will be bad outcome for the Australian Public who have been well served by us in making their financial position better. If this was indeed true then I will be getting out of this game...
  • Broker | 13 Mar 2017, 09:57 AM Agree 0
    “If banks were to take that path, I’m sure the non-bank sector and all the second tier banks would prosper enormously by it. The major banks need not delude themselves that they are the be all and end all of this world.”

    Until the non-bank sector and all the second tier banks jump on board that is.
  • John Whitten | 13 Mar 2017, 10:02 AM Agree 0
    The Major banks will do this at their peril. If this was to happen, broker business to them will drop dramatically, and their share price would drop accordingly.
  • Concerned Broker | 13 Mar 2017, 11:25 AM Agree 0
    I think it's pretty obvious that the banks are going to use this as an excuse to stitch up brokers regardless of the outcome
  • Not surprised | 13 Mar 2017, 11:29 AM Agree 0
    If commission goes then the industry is done for simple as that
  • Wa broker | 13 Mar 2017, 11:50 AM Agree 0
    I don't think we should be surprised that some banks had brought this up with ASIC at some stage during the review.
    Reading between of media/aggregator comments early in this review this was indicated, but is also old news.
    If base line commissions remain the same post reviews, we can still expect the same speculation until the end of time.
    Personally I take heart in our industry representatives giving an indication that base line commissions "should" remain. And wouldn't get to concerned about media organisations speculating on old news designed to be nothing more than click bait
  • Steve McClure | 13 Mar 2017, 03:19 PM Agree 0
    As brokers, we have done everything asked. Industry membership, internal & external EDR, licensing, qualifications, PI cover, CPD, lodging online, AML & various other legislative requirements - and great customer relationships. Banks should keep in mind that we are no longer a "bit player" with few skills. Don't poke the bear.
  • On the Inside | 13 Mar 2017, 03:23 PM Agree 0
    Inside Info its a done deal .5 up front no Trail just like the poms and the yanks
    • Broker | 13 Mar 2017, 05:31 PM Agree 0
      Please remember that about 0.40% of the 0.715% ends up with the ATO in GST and income tax.
  • WA Broker | 13 Mar 2017, 05:47 PM Agree 0
    On the inside of a bank perhaps?? I'd pay more attention to the share price of the major aggregators.

  • Looking for a job | 13 Mar 2017, 07:03 PM Agree 0
    Nooo
    I'll go broke. How will i feed the kids....

  • Sceptical | 13 Mar 2017, 09:05 PM Agree 0
    And where did you get that from
  • Cubeman | 14 Mar 2017, 08:38 AM Agree 0
    So, the $20k top up I just did for a client where I 'earn' $100 now, but after this would result in a flat fee of $X?
    Where as the million dollar loan with 2 x houses and a commercial property would result in the same flat fee being paid??

    That seems to make perfect sense....

    In fact, when I think about it when I order a meal at McAs, the charge should be the same whether I order a cheeseburger or a gourmet meal with a drink and chips...... Can we please get a review to fast food too?
    Also, Blu Ray vs normal DVD - Blu Ray's are usually around $4 - $5 dearer - another review, this time into DVD sales please!!!
  • ex Banker | 14 Mar 2017, 08:58 AM Agree 0
    why wait !! Lets move on mass and show the Banks that they can no longer treat us with contempt. If they focussed more time on weeding out the rogue elements of the Financial Planning and Treasury Divisions - who really are ripping off the consumers, followed by the price gouging on Credit Cards and the continual gluttony on fees, then they would start to get some credibility back.

    Meanwhile they are nothing but a pack of wolves with only one thing in mind (their big fat bonuses).
  • Doubt it | 14 Mar 2017, 09:02 AM Agree 0
    So where did this inside info come from?
  • Vic Broker | 14 Mar 2017, 11:26 AM Agree 0
    Hmmm. The word "Churn" immediately comes to mind here if we go to a full upfront commission structure. Is that what the banks want?
  • Gary W | 15 Mar 2017, 05:32 PM Agree 0
    Might be a good idea to talk with our colleagues association 'across the ditch' i.e. NZ and ask their take on Upfront only and no trails and its impact to the broker fraternity. This has been their reward for quite a number of years now. Also what do they feel should have been actioned when this was first mooted by the lenders. Dont reinvent the wheel use their experience to help us as part of input to our lenders response if this was 'introduced' here in Oz.
    My thoughts to the table.
  • Newbie | 16 Mar 2017, 11:14 AM Agree 0
    I am contributing to this discussion as a broker new to the industry. Up to 25% of that goes to the licensee, of the remaining 75%, 50% of that goes to my branch principal if the lead comes via the licensee or branch network. If I bring the lead in through my own efforts, I receive 70% of the remainder. No trail at all for me. So the average deal here in Qld will bring in around $1000 for me. If banks reduce up front to 0.5%, my projected income reduces to below $35k a year before expenses! Luckily I enjoy broking, own my home and am happy living a meagre lifestyle, otherwise I could not afford to continue doing the work I love.
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