A major broker has poured cold water on the fee-for-service debate, revealing prior initiatives have been put on the back-burner.
Earlier this year, brokerage Smartline
began to look into the feasibility of fee-for-service or a 'no-go' fee for brokers.
However, managing director Chris Acret
revealed the company has temporarily put the research on hold.
"We've had to put it on the back-burner: the cons were starting to outweigh the pros," he told Australian Broker Online.
His revelation comes after a heated debate over the fee-for-service model, which was sparked by research suggesting consumers already believed brokers charged a fee.
Acret did admit that a "healthier" business model was needed to ensure brokers were financially rewarded for hard work.
"We've been talking about it for six years. We need to look at why this service is largely free for consumers, and what would happen if all brokers charged?" he said.
"If commissions fall again, we need a contingency that everyone's happy with."
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