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Risk of commission-related incentivisation “not insignificant”

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Australian Broker | 18 Jan 2017, 08:00 AM Agree 0
An independent review has claimed that current commission structures for third parties could amplify risks for consumers
  • Melb Broker | 18 Jan 2017, 08:56 AM Agree 0
    We have a "little" law to comply with.... it's called the NCCP Act. As a broker if I am doing my job correctly, commission structure has no bearing on which choices I present to my client. The choices are determined by (in no particular order), their needs/wants, capacity to service, lender policy, timeframe to settlement and client choice.
  • Rob - Brisbane | 18 Jan 2017, 09:13 AM Agree 0
    A report commissioned by the Australian Bankers Association (ABA), what else what you expect than it to be against the Broker market in anyway possible. The ABA act on behalf of Banks for goodness sake. Lets face it, the market has moved away from bonus commissions and so it should, most banks pay the same commission which is great for the industry. If you're growing a business it is all about what's best for the customer, that is how you get repeat, referral and recommendation business, lets face it, the Broker channel supports and looks after their client better than the Banks and their staff, having worked for a major for along time and reached GM Level I have seen it. Lets cut the crap and get on with clients being able to make the decision who they would like to deal with, a bank or Broker.
  • Simon | 19 Jan 2017, 11:47 AM Agree 0
    In a perverse way I find this report rather amusing. Sadly it will be used for the exact purpose it was created - for marketing against Brokers - ultimately aimed to reduce consumer choice, reduce market competition, and increase bank's ability to generate profits.

    Consumers lose power, education, choice and money. Small businesses close, staff lose their jobs. Banks increase their (ludicrous) profit margins at the expense of their customers to the benefit of their shareholders.

    A move to Fee-for-Service is a move away from customer choice and benefit.
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