NCCP pushes Australian Capital into aggregation

by Adam Smith21 Mar 2012

Australian Capital Home Loans has claimed offering brokers access to a full range of financial services products will set it apart from competitors as it transitions into aggregation.

Announcing the mortgage manager will start offering aggregation services, managing director Barry Parker said it had made the move into aggregation in the wake of NCCP, after regulation limited the ability of credit reps to do off-panel deals. ACHL has never been on an aggregator panel.

Parker said the business holds both an ACL and AFSL, and the additional aggregation model would allow brokers to work either under their own banner, or under the Australian Capital brand. The company will continue to focus on mortgage management products as well, with Parker claiming its move into aggregation "simply gives more options to broker and client".

"Credit reps and licensees will have several business options with us [including] writing home loans through our aggregation model, becoming a financial services consultant either by completing training to be able to offer financial planning advice or referring business to our internal staff, offering additional products such as general insurance, property investment and property buyer services or a diversified business model incorporating a mix of these aspects," he said.

In spite of the move, Parker defended mortgage management. Though he conceded many mortgage managers had to adjust their income models following commission reductions and the unilateral ban on exit fees, he claimed mortgage managers remained "a viable model in today's market".

"Moving to an aggregation model allows us to recruit credit reps to provide them with not only our managed products but the broader market spread of lenders and products as well.  A large proportion of mortgage managers are on aggregator panels so this negates the need for them to become aggregators themselves."