Weekend wrap: New product, new CEO and a new commission structure

by AB20 Feb 2016

Making news this week, an aggregator launched a niche white label product, a leading brokerage appointed a new CEO and a major franchise claimed the industry should follow its lead on commissions.

Challenger aggregator My Local Broker announced the launch of Footy Home Loans ahead of the business’ official launch set for April 2016. The product is available specifically the fans of NRL team Melbourne Storm after a sponsor agreement announced in December.

However, My Local Broker CEO Jaci Smith told Australian Broker that the Melbourne Storm is only the beginning. 

“It is not just Melbourne Storm, it will be both codes – AFL and NRL – and there will be more clubs coming to the pack.”

This week Shore Financial also announced a major restructure, including the appointment of a chief executive officer, as it transitions from a small Sydney-based brokerage to a large interstate financial services organisation.

Theo Chambers, who co-founded Shore Financial with Alex Nochar in 2013, has been promoted to the newly created CEO position.

Speaking to Australian Broker, Chambers said his main focus this year will be to deepen its referral relationships and improve Shore’s business infrastructure and processes.

Finally, the CEO of Mortgage Choice John Flavell said the industry would benefit if ASIC’s forthcoming commission review suggests the mortgage broking industry adopts the Mortgage Choice commission structure.

“Actually I think if there is any opportunity to improve in terms of commissions then I think the industry would benefit if they adopted the approach that Mortgage Choice takes – that is, regardless of which lender the customer goes to the broker receives the same amount of commission. It is a weighted average commission,” he said.