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Second industry forum lays remuneration foundations

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Australian Broker | 20 Jul 2017, 03:10 PM Agree 0
The joint forum has set the stage for further industry progress responding to proposals in ASIC’s broker remuneration review
  • BrokerSA | 20 Jul 2017, 03:21 PM Agree 0
    If I am paid any less than now I can't provide a fee free service to first home buyers and high LVR borrowers anymore and will need to charge these borrowers a fee or decline to assist these borrowers unfortunately.
  • Ken | 20 Jul 2017, 03:21 PM Agree 0
    The ABA still seem to be out on a limb in their specific desire to engage with Consumer Groups who have demonstrated a clear failing in their understanding of this industry.
    This process is death by a thousand swords. 12 months for ASIC review, 3 months consultation, now 6 months for industry to respond, then xx months for any decision.
    Oh well, good news, I might be able to retire gracefully before anything changes.
  • Greg | 20 Jul 2017, 03:42 PM Agree 0
    Hopefully they don't spend much time discussing the Sedgwick report nor give it any more airtime, utter rubbish lacking any balance and detail. Throw it in the bin along with CHOICE consumer group views.....otherwise the outcomes will be worse for consumers without doubt!
  • Broker T | 20 Jul 2017, 03:55 PM Agree 0
    Am with broker SA and Ken on this issue. I'm so amazed that these so called 'consumer groups' spend to much time 'protecting' the consumer and even more time criticizing those who in fact DO assist the consumer with good home loan choices and options. When o when does the consumer ever take responsibility for their own poor decisions. A broker did not force them into buying that nice SUV to go with their recently purchased home. Nor the wide screen TV, the holiday, the new furniture all on credit from any number of 'pay no interest for 5 years' retailers. And yet Choice and other protection groups only see the broker as the cause of all financial evil bestowed on the consumer. Choice and other really should help to protect consumers on educating on how to manage money and not target brokers on how they help the consumer and the brokers remuneration. Stay out of this consumer groups, the halo over your head really doesn't fit.
  • Michael of Adelaide | 21 Jul 2017, 01:01 AM Agree 0
    What has prompted ASIC to review broker's remuneration? What glaring issues have arisen that need addressing? What significant problems in the current format are negatively effecting consumers that require such a review?
    If banks and brokers are happy and consumers are not negatively impacted, then what need is there for a review? I feel that PAYG employees of ASIC simply perceive any sales oriented financial services activity as innately skewed away from a fair customer/consumer outcome. This is not true at all.
  • Broker | 21 Jul 2017, 09:26 AM Agree 0
    This review should be rebranded for what it is - how to increase the lenders profits with anti-competitive behaviour by introducing poor broker outcomes , despite the fact that the Ernst & Young research shows that 92% of clients that use a Broker are either satisfied or very satisfied with the services provided.
  • GFC | 22 Jul 2017, 01:05 PM Agree 0
    I believe we work dam hard for our money. Yes there might be some easy straight forward deals.
    But a lot of our time is spent finding the right loan for peoples needs and this may take some time. Also what about the time you spend on some deals and you cant get them set, or the customer says (I have changed my mind I don't think I want to go through with that loan anymore) and you have spent hours on that loan and you end up with nothing. I have been in this industry for 18 years and our commission structure has never had an increase .Clawbacks, what other industry has to give back 100% of there commission, when its not our fault they leave where we have placed them. Have the banks thought,it might have been them that lost the customer. What is wrong with us getting paid what we are getting paid. I do think we are underpaid for what we do. The Government should be looking at themselves regarding their income,they get way overpaid for what they do.Claw back their wages if something goes wrong with a decision they make,Daniel Andrews would be well out of pocket by now.All government workers get paid way to much for what they do.
    Solicitors that's another industry that should be looked at. As a Broker I believe we work to get paid, not paid to work.
  • Broker | 23 Jul 2017, 10:41 PM Agree 0
    One thing i have not seen in the media or anyone mention over this debate regarding broker's commission and trails etc.
    Is the following.
    What is going to happen to the staff brokers employ to help service customers.
    What is going to happens to all the office space brokers rent to run their business,
    What is going to happen to services industries brokers use to help run their business.
    What is going to happen to the employees who work at home for family reason. (loan writer etc). Show me an industry that offers flexibility to their employees.
    Brokers are locally based and they employ local people. Some of the big banks have their back office staff overseas!?
    Some brokers are single operators and other brokers have loan writers etc, all brokers use some form of external services to help run their business. Have the consumer groups thought about how many people are employed Nationally by brokers and use service industries of various types and the effect of their media campaign on brokers?
    The cascading effect if brokers lose their trail or the commission are reduced, the broker will have to look at the their business and restructure the business so the broker can put food on his family table and may have to downsize the business as it is not cost effective to run on the new payment structure.

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