Advantedge denies home brand conflict claims

by Mackenzie McCarty24 Oct 2012

Aggregator white label products represent new competition according to Advantedge general manager of distribution Brett Halliwell, not a conflict of interest that will encourage closer ASIC scrutiny.

Amid cautions from industry-leading aggregators such as Mortgage Choice and Connective that heavily incentivising white labels ahead of other products could encourage ASIC to investigate, Halliwell said Advantege's white label products were popular because they were competitive.

 "Other aggregators have been saying that home brands have too big a share, but my view is that we are offering simple products that meet consumer needs, and brokers are choosing them," he told Australian Broker Online.

"We would never ever ever demand or expect a broker to choose these products; we have to earn our right to be chosen on every single deal by both the customer and the broker."

Advantedge's home brand products are now among the top four products recommended by brokers of Advantedge aggregators PLAN, FAST and Choice.

"If you think about PLAN, Choice and FAST being roughly about 40% of all broker turnover, then for these home brand products to be consistently among the top four on all these panels means they are very strong lenders," Halliwell said.

Gadens Lawyers senior partner Jon Denovan said the MFAA will soon update its conflict module to ensure brokers are aware of their obligations when recommending product to clients.

"Our products offer a compelling proposition to brokers and their customers," Halliwell said.

In the last three weeks Advantedge had introduced upgrades including pre-order valuations and enhanced and simplified mortgage documentation, designed to make the process simpler.

"We listened to brokers to build a best in market offering, delivering leading pricing together with simple, high quality products and services. Demand for our competitive products has seen their popularity grow at a rate which has exceeded our expectations."




  • by Country Broker 24/10/2012 10:47:37 AM

    As a PLAN member and broker , IT IS GOOD TO SEE THIS PRODUCT AVALIABLE , what is not understood is that the product offering does not suit all loan scenarios , where as some big 4 product offeing do , this to me is competition in itself.
    If CBA, Westpac, and ANZ were worried surley they woud withdraw from accrediting PLAN , FAST & Choice. That has not happened , i think the previuos article may have been a little bit of sabre rattling.

  • by Coast Broker 24/10/2012 10:54:38 AM

    Agree with Country Broker. I am also a Plan Member. Lets face it Advantedge is owned by one of the Big 4

  • by Phil Sampson 24/10/2012 11:25:14 AM

    Well said Brett. All the aggregators are rightly promoting non majors due to their strangle hold on the mortgage market. A credible solution is offered to the third party market and we still hear complaints from some aggregators. All clients' are fully aware of the broker's income as it is fully disclosed as required by ASIC. The customer gets a competitive rate, the broker and the customer get good service...... Where's the problem??? Maybe the aggregators complaining should be looking for other funding partners before the grapes get too sour. We are all screaming out for competition ..... here's a part of that solution.