Commissions add to lure for new Choice brokerage

by Caroline Dann30 Aug 2012

A boutique brokerage has forgone independence and signed up with an aggregator, claiming it will benefit business growth.

Adelaide-based The Loan Arranger announced yesterday it has joined forces with Choice.

Managing director Steve Marshall told Australian Broker Online one of the key benefits was a potential increase in commissions for its brokers.

“The aggregators have made it more attractive for individual brokers to come in because they can offer a higher commission structure,” he said.

“[Previously] I’ve found that I’ve brought brokers in, mentored them and trained them, and after they’ve got the run of things they go out; because their trails haven’t built up sufficiently they’re prepared to leave and chase that higher commission.”

He said a recent collapse of the company that provided The Loan Arranger’s commissions software had forced him to consider “other options” as “the software had become unsupported.”

Marshall is adamant boutique brokerages still have a future in the industry, however growth limitations under the independent model become a major factor, he said.

“I think it’s harder to grow your numbers as a traditional boutique brokerage.

“We’ve predominately had the same people in our business for 15 years. If our broker numbers reduce, and we have volume hurdles to satisfy to the different banks going forward…we will run the risk of losing some accreditations with some of the lenders.”

Interestingly, Marshall hinted his succession was also a key factor.

“I’m probably reaching a point, from a succession planning point of view [where] I think probably a larger group, an aggregator, is better for us to provide a level of management above me and for the company going forward.”


  • by Country Broker 30/08/2012 11:19:11 AM

    Surley the days of small aggregators are numbered, it is simply too risky to deal with them unless there is a way to secure commissions such as a trustee arrangment.

  • by Scott Beattie 30/08/2012 3:55:07 PM

    I would also suggest for brokers to be very wary of dealing with off panel lenders - especially in regards to non-banks - I have 3 non-banks cease trail payments as I am no longer an ACL. What a joke! Thankfully not a lot of trail with the 3 lenders in question, but I am very glad that I didn't give them any further support than I already did.