Comment of the Week goes to…

by 07 Feb 2014
 At Australian Broker, we love a bit of healthy discussion, which is why we honour our favourite comment each week with a lofty little title. Drum roll please...

When top broker Colin Lamb announced his decision to switch aggregators and roll out a sub-aggregation model, many brokers were quick to share their thoughts on the value proposition of the two aggregators in question, as well as general competition within the sector.

Patrick McMenamin, director of Common Cents Financial Services, however, took on some of the bigger issues at hand:

"This is just a change of aggregator from Plan to Finsure. The differences, I suggest, will be cosmetic. The big issue is that Plan will keep earning fees on the existing trailer book, despite providing nothing in the way of service other than collecting money for themselves. Surely there is a failure of consideration here and without consideration the contract is invalid.

"It is long overdue for the same rules applicable to financial planning to apply to mortgage broking. That is, only one licensee can be responsible for an authorised representative/credit representative at any time. The ongoing trailer income should be transferred when a broker (corporate or individual) changes aggregator. This would create real competition and service from this lender endorsed quasi-monopoly industry."

Thanks to everyone who contributed comments over the last seven days and keep an eye out next Friday to see if you're the author of Australian Broker's next top 'Comment of the Week'!