Brokers invoke Chopper Read in commission cries

by Caroline Dann16 Jul 2012

The subject of broker commissions is a touchy one. After Australian Broker Online published a teaser for its video piece on the future of commissions, the reader forum exploded with impassioned, eloquent and downright sensational opinions. 

One reader summed it up in a clear, no-nonsense manner. “Brokers: man up, stand together and don't write loans with banks that pay you rubbish commissions. It is as simple as that.”
 
He also added brokers should, “in the words of Chopper Read, harden the f*** up.”
 
Others focused on what they perceived as dishonesty from banks claiming rising funding costs as a reason for commission cuts.
 
“The argument of funding costs doesn’t hold much water any more given the fact the banks have dramatically increased their margins. The banks need brokers to deliver customers to them. I say it’s time to share the spoils a little more,” said Gary.
  
Both second tiers and majors suffered criticisms from readers.
 
“Funding pressures my backside. If there is really so much funding pressure, perhaps the banks can explain why it's not having a negative effect to their bottom lines. Just look at the drop in CBA's and Westpac's collective market share over the past two years - that is clearly broker-driven folks,” said ‘Broker’.
 
Above all, there was a feeling that brokers want more recognition for the hard work they do.
 
‘Broker 2’ summed it up perfectly.
 
“If the lenders value our channel so much, they should pay for it,” he said.
 
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