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Aggregators could face white label crackdown

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Australian Broker | 22 Oct 2012, 06:00 AM Agree 0
Aggregators incentivising their brokers to write white label products could face potential ASIC sanctions according to two leading aggregators
  • 1martym1 | 22 Oct 2012, 09:42 AM Agree 0
    Yes I agree with the sentiment but thats life and it's like saying Rams or Yellow Brick Road shouldn't push their own in-house brands. There is a difference in the consumers perception that they will be offered the home brand products granted but its not that different really. If the white labels keep growing and offereing cheaper products than the market they will get big enough to be a know brand in themselves? It has to start somewhere.
  • Ray | 22 Oct 2012, 09:55 AM Agree 0
    the same can be said for major banks punishing brokers for low volume...
  • Martin | 22 Oct 2012, 10:01 AM Agree 0
    As long as the product is not unsuitable to the clients need I can't see an issue. Surely incentivising people is just apart of most sales and professional enviroments. In the banking systems most bonuses are paid to staff merely on producing and selling products that are the flavour of the month. It is always up to the integrity of the individual to be solution based with the clients best interest at heart. That is an individual decision:)
  • BONED | 22 Oct 2012, 10:17 AM Agree 0
    When was the last time a 'major' offered you an overseas holiday for 'selling' their home loans, on top of generous commissions?! While I don't disagree with what 'Martin' states, I receive far more white label promotion emails from my Aggregator than any other type of email. Actually come to think of it, can't recall the last time I received an email from my BDM that wasn't white label related!
  • Jon Denovan of Gadens Lawyers | 22 Oct 2012, 10:21 AM Agree 0
    The MFAA will soon be updating its Conflict Module to deal in greater detail with white labelling and lease finance. Lease finance has similar characteristics when brokers can set the margin. The short point is that what can be done depends on what 'hat' the broker is wearing. If the broker is clearly acting as a product distributor, then 'buyer beware' applies - just like a bank can set its own interest rate. But the topic is complex, and there are many traps and duties which need to be considered. There is an important balance to get right -- to balance consumer protection and facilitate business. Stay in touch with the MFAA and like all other key issues, a clear position paper will soon be available.
  • Martin | 22 Oct 2012, 10:32 AM Agree 0
    I believe there was an major bank boat cruise recently for top performers...doesn't mean it's right by any means but the carrot and stick approach has been around for decades. We are moving into a new era of integrity which I think is great I just believe we as individuals need to be the solution of taking care of customers needs and the industry will eventually follow:) But great discussion point and great merit to all the comments so far!
  • Will-Perth | 22 Oct 2012, 10:34 AM Agree 0
    This is NO different to those big banks who demand volumes for increased commission. Both are very questionable unless you openly declare such an incentive to your clients.
  • terry | 22 Oct 2012, 01:58 PM Agree 0
    lets just go communist and do what we have to for the good of the state. we the same home loan at the same rate, all wear the same cloths, drive the same cars, eat the same foods and we all get paid the same income income each week regardless of occupation. that would be "BEST" for us all and not unsuitable at that. problem solved.
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