Aggregators accused of delaying broker departures

by Mackenzie McCarty13 Nov 2012

The head of an up-and-coming challenger aggregator brand has warned brokers they may face reluctance and delays from other aggregation players if they choose to switch providers.

Finsure managing director John Kolenda, who launched the aggregator late last year, said he had witnessed delaying tactics by "a number" of aggregation groups when brokers choose to move.

He said that this was a "poor reflection" on the service that they provide their broker members.

"If the broker has made a decision to move, then by playing fun and games, it is not helping them, and tactically I think that is a very poor strategy," Kolenda told Australian Broker.

Kolenda said of the 130 brokers that had come on board with Finsure, about 10-15% had faced problems with delays.

He said that any such behaviour from competitors could actually see them in a breach of compliance obligations enforced by ASIC, which ensures brokers are not licenced under different providers concurrently.

"If a broker has processed a termination notice, then they [an aggregator] have an obligation to provide a termination letter," he explained.

"If we transfer that broker onto our licence, then if that broker is subsequently reported to be under two difference licences, one of them is non-compliant and it ain't me."

Kolenda said that Finsure hosts in-house capabilities that assist brokers with their transfer from other aggregators, and is sometimes able to have a broker up and running in between 24 and 72 hours.

However, he said that in some cases aggregators were doing "whatever they can to prolong the pain for them".


  • by VB Liquidity 14/11/2012 10:07:43 AM

    Truly a bigger issue is the delay by banks when refinancing home loans. Nab told a recent client they have 28 days to "respond" to their discharge request! Note this did not mean settlement, just a response?? And I actually tried to restructure the home loan with Nab as it was only for a car loan increase! Don't worry the other banks have similar service standards! What will Swannee say to this when I write to him giving him an update on his fantastic switch banks ezy legislation? It's time these banks are made accountable for their stalling tactics!

  • by ozboy 15/11/2012 10:41:43 AM

    Been going on for years and will continue. Perhaps the MFAA/FBAA could put their code of conduct provisions to use and get some traction. Just a thought.