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Broker associations disappointed with Sedgwick

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Australian Broker | 21 Apr 2017, 08:25 AM Agree 0
The MFAA and FBAA have expressed concern about recommendations found in the recently released Sedgwick review
  • John Whitten | 21 Apr 2017, 09:03 AM Agree 0
    I don't see that anyone should be surprised with the report. It was commissioned by the banks, so it was always going to give the banks the opportunity to screw brokers.

    The banks state that we are their partners, however I feel we are like the toothache that they have to tolerate, and they would be happy to get rid of us, or as a minimum reduce our profitability.

    I am also concerned about aggregators being owned by banks. I have been told that our aggregator will be looking after the brokers interests in this matter and not putting the banks interest first. I am not so certain that this will happen.

    We need to put all bank owned aggregators on notice, that if this occurs, we will be looking for non bank owned aggregators. If we moved it would result in lower profits for bank owned aggregators.

    This is not a game, it is our livelihood.
  • Barney | 21 Apr 2017, 09:37 AM Agree 0
    If you write larger loans you would know that they are (mostly) much more work. Some of what is implied is the belief that brokers "sell" people larger loans than they need which is just ridiculous. The loan is a by-product of the decision to purchase. You don't upsell the debt! And if you do the banks should clawback undrawn funds after a set period. That's fine. Though payments should still be linked to loan size.
    Otherwise who would want to write complicated self employed (larger) deals? As Peter White said - whoever wrote this clearly does not understand lending. Its a clever framework to allow the banks to collude on pricing (or commission payments) and they can they say "It wasn't us.... " yer right...
  • Sam | 21 Apr 2017, 09:55 AM Agree 0
    I couldn't agree more, John. As a member of 15 years with a now bank owned aggregator, I am extremely concerned about my future.
    Unfortunately, if I change aggregators, I lose my trail so changing is not a real option. I haven't heard a squeek from my aggregator and very much doubt if I will. More chance of Wayne Bennet demanding that the ref send one of his players to the sin bin!!
  • Tom | 21 Apr 2017, 12:17 PM Agree 0
    What a crock. This is a recommendation that we are to be paid and treated like an employee but are expected to carry to all the costs of legislation, compliance, PI including associated cost suck as our superannuation and holiday pay just for starters.

    it also strips us of a saleable asset which for some would form a strong part of their retirement strategy.

    This is a criminal act if ever there was. For a broker their business is an investment in their future. its another CBA Storm Financial in the making just in a different arena. the only difference is a poly wont be interested in it because its not a vote winner (take note Bill Shorten you say your for all Australians)

  • Unhappy broker | 21 Apr 2017, 01:07 PM Agree 0
    Similar to what happened with taxi licences in some states - worthless overnight.
    Government doesn't care about that, no way they will worry about us.

    We have been shafted by the big 4 and the charge has been led by CBA.
    CBA fixed rates just increased, the cynic in me says this is part of their bigger plan to wipe us out. My bet is they will still offer the lower rates direct through branch.
    We need to support the second tier lenders at EVERY opportunity now.

    Strangely quiet from our aggregator..... funny, they have been talking it up for months about how positive all the changes are.
    Egg on face in a big way!

  • Consumers winning | 21 Apr 2017, 09:38 PM Agree 0
    Per article, the Banks paid for this report.

    Less discussion the better. Sedgwitch would have some creditability if he looked at clawback and formed an opinion. Lost me when he said the aggregators didn't engage. You should have got all the facts from aggregators. As ASIC have discovered, consumers are doing very well, surprisingly well. Its not gospel and only one persons opinion feed by .... the banks!
  • Bankslovetoscrew | 24 Apr 2017, 08:56 AM Agree 0
    A Bank funded wish list
  • Clarke Kent | 24 Apr 2017, 10:34 AM Agree 0
    And to think Sedgwick was paid fo produce this ill informed rubbish
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