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Portability argument dodging the real issues: Connective

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Australian Broker | 13 Feb 2014, 08:00 AM Agree 0
Aggregators who claim resistance towards broker trail portability sits with the lenders are simply 'passing the buck', says Connective director Glenn Lees.
  • Aarong | 13 Feb 2014, 09:30 AM Agree 0
    I agree with Lees in principle. This should become an addressed part of Aggregator agreements, but sweeping rules across the industry wouldn't be fair. You should have trail portability if your aggregator offers it to you in your contract. The issue with sweeping laws for all is that I see, from the aggregators perspective, its a problem for the heavily branded aggregators. Aussie clients call Aussie due to its branding. They may come back to the broker or might come back to Aussie because they feel they have received great service. Who is to say who they attribute the good service to and who captured/kept the client. Lots of clients are loyal Aussie clients and can't even remember the name of their broker. They just call 1313whatever when they need money again. They know the phone huber because its thrown at them in expensive advertising. In this case I would argue that Aussie would be entitled to some of the trail ownership as their branding almost certainly (in nearly every single case) continues to be an influence on the customers decision to stay. A non-branded aggregator, without millions spent on marketing, has brokers who rely on just the brokers reputation. Nobody goes to an independent broker because they are with the Connective Group. They don't even know who Connective is. Therefore, Connective shouldn't even be asking to own the trail. They didn't pay anything to establish it. Lees is right though, this should be an option that is available if brokers and aggregators agree to this in a contract. Broker trail ownership would stop the shonky aggregators from simply stopping broker's promised 'lifetime' trail when they leave. Portablility of trail shouldn't be shoved down everyones throat as a mandate though. If this becomes well established I know I won't be moving to another aggregator unless they offer this.
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