Court documents have exposed how Finsure shifted from supporting Hai Money to terminating the sub-aggregation agreement within a matter of days.
Evidence presented to the NSW Supreme Court has revealed the striking speed with which Finsure reversed its position on Hai Money, moving from expressing support for the embattled sub-aggregator to terminating their commercial relationship in a matter of weeks.
Finsure terminated the sub‑aggregation agreement in late April, after lenders raised red flags about potential broker misconduct within the Hai Money network.
The termination came after several brokers operating under Hai Money were terminated over concerns relating to alleged mortgage fraud.
Hai Money on 13 May turned to the NSW Supreme Court, seeking “a return to the status quo as it was before the service of the termination”, with Justice Kate Williams on Friday (15 May) granting Hai Money an interim injunction, preventing Finsure from acting on its move to terminate the sub-aggregation agreement.
The Adviser has taken a closer look at the court documents, which have revealed both parties outlining starkly different accounts of how the relationship unravelled.
Broker suspensions begin
According to evidence heard in court, the first signs of trouble emerged between June and September 2025, when Finsure notified Hai Money that National Australia Bank (NAB) had suspended 15 brokers within the sub-aggregator’s network, including Andrew Hu.
Hu was a former NAB and CBA banker who later operated as a broker under Hai Money’s credit licence and has since been charged with 89 offences in connection with the alleged Penthouse Syndicate fraud scheme.
The suspensions were imposed pending an investigation or review of files, though Hai Money said no reasons were provided to it at the time.
The situation escalated on 5 December, when NAB moved to terminate the broker accreditation of Hu, prompting Hai Money to sever its relationships with the affected brokers.
However, the decisive moment came on 23 December 2025, when Finsure informed Hai Money that NAB had suspended the accreditation of its entire broker network.
In affidavit evidence provided by Finsure CEO Simon Bednar, he told Hai Money director Bruce Li in February 2026 that the suspensions were tied to serious allegations.
Bednar stated that the brokers had been suspended due to Hu being charged with fraud.
The clawback controversy
The court also heard that throughout this period, NAB began clawing back commissions it had previously paid to Finsure for loans written by Hai Money brokers.
Hai Money claimed Finsure, in turn, passed these clawbacks through to it, deducting amounts from sums that would otherwise have been payable to the sub-aggregator.
Hai Money’s affidavit evidence asserted that neither NAB nor Finsure provided explanations for why commissions on particular loans were being clawed back.
In his affidavit, Bednar offered a different characterisation of the clawbacks, stating the decision was made by NAB and emphasising that Finsure did not underwrite the payment of commissions by lenders.
From support to termination
On 8 April 2026, Bednar forwarded an independent PwC compliance review report to NAB along with a message that appeared to signal Finsure’s commitment to preserving the relationship.
In the correspondence, Bednar wrote: “Once again I want to reiterate Finsure and my personal support for the Hai Money business and hope these changes and any recommendations from NAB can see their suspension lifted.”
Yet just six days later, on 14 April, Finsure notified Hai Money that it had identified 97 brokers within the network that it considered to be “high risk” and whose accreditation would be terminated.
The final rupture came on 22 April 2026, eight days after Bednar’s supportive email to NAB, with Finsure writing to the directors of Hai Money, delivering the formal notice of termination.
The letter stated: “We hereby give you notice of the termination of your Sub-Aggregator Agreement pursuant to among other clauses 5.1(b), 5.1(d) and 5.2. Termination will become effective immediately from the date of this letter.
“Among other reasons the termination has been made due to recent information provided by NAB regarding fraudulent activities of your Intermediaries.”
The lender exodus
Bednar’s affidavit outlined the broader pressures bearing down on Finsure at the time of termination, revealing that NAB was not the only major lender taking action.
The Commonwealth Bank had also suspended the accreditation of all Hai Money brokers pending an investigation and had requested information from Finsure, including the PwC compliance report.
Macquarie Bank had terminated five Hai Money brokers on 20 April 2026, Australia New Zealand Banking Group (ANZ) had terminated 17, while Suncorp had terminated 23 brokers from the network.
Bednar’s stated concerns
In his affidavit evidence, Bednar outlined three primary concerns that drove Finsure’s decision to terminate.
First, he expressed concern that the terminations of Hai Money brokers by large lenders would taint Finsure’s reputation in the mortgage broking industry, with Finsure being seen as “guilty by association” with brokers whose accreditation had been revoked.
Second, Bednar pointed to the potential for increased insurance premiums if Finsure was held liable for involvement in any contraventions of the Australian Consumer Law.
Third, he raised concerns that Finsure’s association through Hai Money with brokers whose accreditation had been revoked could attract scrutiny from regulatory authorities such as the Australian Securities and Investments Commission (ASIC)
In his affidavit, Bednar said such scrutiny “would require a substantive response that would divert Finsure’s resources away from carrying on its business in the usual manner”.
For his part, Li gave evidence that monetary damages would not provide adequate compensation for Hai Money if Finsure’s termination of the agreement was ultimately found to be invalid.
Li said Hai Money would likely become insolvent before any final hearing could take place and that the broker network would be destroyed in any event.
[Related: Court freezes Finsure’s bid to cut ties with Hai Money]
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