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Major aggregator readies for listing on ASX

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Australian Broker | 04 May 2015, 10:54 AM Agree 0
A major aggregator has begun the process of listing on the ASX, with its IPO expected to raise around $120-140m
  • Really | 04 May 2015, 11:05 AM Agree 0
    Does this mean their Brokers can now switch aggregators without losing their trail - like all the others?
  • MYRR | 04 May 2015, 11:13 AM Agree 0
    Must not have received the kind of offers they wanted by selling.....
  • Fred_C | 04 May 2015, 11:16 AM Agree 0
    Gee. The statement from AFG that 50% of THEIR income comes from OUR trails says it all. It really does. That is the single thing I retain from this article !!
  • hesitant | 04 May 2015, 11:19 AM Agree 0
    Finally! After 3 years of threats from AFG that if I left, I would lose ALL of my trail ($500K per annum) it seems that there may be light at the end of the tunnel. Fingers crossed!
  • Unhappy... | 04 May 2015, 11:22 AM Agree 0
    After moving aggregator groups from AFG last year, these guys HELD ALL of my trail for a 'breach of contract' which was non-existent. Wasn't worth the fight, just happy I left when I did. They were obviously just pumping up the cash in the bank for a listing...
  • MCC | 04 May 2015, 11:32 AM Agree 0
    As an AFG broker of 12 years I know we were always able to switch without losing our trail - it's build into agreements. AFG are a strong business & I am pleased they are listing, as long as major shareholding does not end up in the hands of they that shall remain unnamed.
  • SanityPrevails | 04 May 2015, 11:33 AM Agree 0
    I think mythbusters needs to come to town. My agreement with AFG says (just like everyone else's) that if I satisfy all the terms and conditions of the agreement my trail will continue to be paid. So it appears that "Really" really is clueless!!!
  • Ray | 04 May 2015, 11:36 AM Agree 0
    If they allowed brokers to take their trail and actually followed through to ensure lenders did the needful, you'd see skid marks not only on their books, but on their stock price. As strange as it may seem - aggregators who do not add significant value are living on borrowed time (not money).
  • Richard | 04 May 2015, 11:38 AM Agree 0
    I wonder if AFG's loyal brokers over the last 20 years will be given shares to avoid losing them?
  • SanityPrevails | 04 May 2015, 12:15 PM Agree 0
    So Richard, it is against ASX laws to "give shares" but I wonder if you asked the same question to any loyal Plan, Choice, FAST, Aussie, Nmb, Connective brokers if they received shares when they were either sold wholly or in part? They are all institutionally owned and AFG will remain the largest independently owned aggregator in Australia. I ask all contributors, to obtain the facts first before idly passing incorrect comments. Fred_C they are only listing the income retained not the 100% paid by lenders! again! get it right!
  • JB | 04 May 2015, 12:20 PM Agree 0
    AFG always coy on trail ownership but if you try to leave they will not allow you to exit with trail intact. Existing & prospective brokers are deluded if they think they have ownership of their own trail book.
  • To SanityPrevails | 04 May 2015, 12:32 PM Agree 0
    @ SanityPrevails - To your comment - Yes - "if I satisfy all the terms and conditions of the agreement my trail will continue to be paid."

    However, most contracts will also include minimum volume requirements and I have been told that in one 6 month period, 2 years ago, I breached the terms and conditions and settled below the required amount - therefore by leaving I would be breaching entire contract and NO LONGER paid trail. Fullstop. Disgusting.
  • Richard | 04 May 2015, 12:35 PM Agree 0
    Well SanityPrevails I think we all know which side of the fence your siting on, maybe try wearing a brokers hat for a moment!!
  • Craig | 04 May 2015, 04:18 PM Agree 0
    I left AFG to a bank job about 10 years ago and have rejoined the industry with another completely different group given my need to get leads as a start up and AFG has continued to pay my trail without a problem every month for that entire time. I'd prefer to be with an independent Aggregator than a bank owned one any day. Wouldn't the aggregators behaviour be more short term if they did stand to lose their share of the trail when you left? My AFG BDM invested significant time and therefore AFGs money to help me establish my broker business originally and I don't begrudge them for earning a trail income.
  • Dave Robinson | 05 May 2015, 09:41 AM Agree 0
    In relation to agreements and AFG, my understanding is that they have several different agreements and depending on your "business acumen" will determine which agreement you are offered. You can then ask them to change any clauses you wish. If you signed as is with a hold over your trail then blaming AFG and not yourself would seem pointless. There is a big lesson here for brokers both old and new, learn from others.
  • Broker WA | 12 May 2015, 05:15 PM Agree 0
    Hey, are we not all on the wrong track with this argument?

    Is it not absolute arrogance for ANY aggregator to think that they have ANY right to the trails of the brokers who use them to fundamentally just collate commissions?

    Its the 21st century, times have changed. Aggregators should not even lock in brokers with contracts, unless they themselves believe know they don't have much to offer and they will lose their brokers easily !!
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