Why unhappy brokers don't switch aggregators: Top reasons revealed

by Robin Christie25 Jun 2013

Data migration and IT issues present the biggest barrier for brokers who want to switch aggregators, according to Australian Broker sister publication MPA’s 2013 Brokers on Aggregators survey,

While very few of this year’s respondents expected to leave their aggregator anytime soon, a small number of comments suggested that certain brokers were unlikely to leave, not because they were happy with the service received, but because the barriers to leaving were too great.

So what’s stopping them? When asked the question ‘if you were to change aggregators today, what would be the biggest obstacle to you leaving?’, the top three responses by quite a margin were data migration/IT issues (30.5% of responses), contractual obligations (24.5%) and clawbacks/trail issues (20%).

Interestingly, a few comments suggested that one option that was not provided as part of this year’s survey – difficulties in gaining reaccreditation with a new aggregator’s lending panel – was also proving to be a significant barrier to switching.

Main barrier to leaving:

Clawbacks/trail issues


Contractual obligations


Data migration/IT issues


Licensing issues


Loss of back-office services


Loss of marketing services


Upfront commission issues






  • by Country Broker 25/06/2013 10:02:02 AM

    No surprises , what really needs to be done in the industry but will never happen is to make the lender accreditation applicable to the individual broker and not the Aggregator . It would then be a matter of switching to new codes and the signing of a new aggregatopr agreement ,In no way am I suggesting that the trailers be transferred , simply the accreditation with each lender. Is this too simple.

  • by NP 25/06/2013 10:19:49 AM

    Contractual obligations is another name for "lose my trail" effectively meaning 44.5% are unable to leave their aggregator for this reason. Aggregators who use little known handcuff clauses to force brokers into staying are to be avoided at all costs. They know who they are.

  • by Disgruntled Broker 25/06/2013 10:22:30 AM

    Hmmmm....not surprising but I thought the "wanting" to switch aggregators would be far greater given the new players offering flat fee and not based on volumes nor service interpretations.
    Our company have recently transferred our business after 13 years with the one aggregator. They are now withholding our trails on a trumped up "breach" of not reaching required annual minimums. They have been accepting of this for the past 4 years but as soon as we advise to leave they raise the limit breach and now won't part with over $250Kpa in trails!!! No wonder we have had many brokers looking to switch due to having their trails forfeited.
    This is why we work hard to make a living and to have a legacy to pass on. Who do these aggregators think they are!
    We say "see you in court"