Brokers reveal key reasons to switch aggregators

According to The Adviser’s annual Switching Aggregators survey, brokers identified software, trail portability and aggregation fees as all being “very important” in a decision to switch or join another aggregator.

Of the 300-plus survey respondents, 69.5 per cent said software/technology was “very important” in their decision to switch.

Similarly, 69.8 per cent said trail portability was very important and 60.7 per cent indicated that aggregation fees were critical.

Speaking to The Adviser, AFG’s Mark Hewitt said he wasn’t surprised by these results, as brokers are increasingly looking to be associated with an aggregator that has a good software platform.

“At AFG, our latest focus has been on providing point of sale tools that are usable on tablets. We want to help the broker lodge their applications faster and be compliant in the process,” he said.

Connective’s Mark Haron agreed and said that since the National Consumer Credit Protection Act reforms were introduced, brokers have been looking for software that ensures their businesses are compliant.

“As such, they are looking for an aggregator that has a software platform that helps them not only grow their business but stay compliant,” he said.

Mr Haron said brokers were also looking for fair commission splits and good business support.

For brokers who are thinking of making the switch, he said it is imperative that they look at their contract before making any final decisions.

“Look at the contract: while you can ask a lot of questions, I don’t think you should necessarily believe everything the BDMS are telling you. Make sure it is backed up in writing before you make any commitments,” he said.

“The terms and conditions need to be exactly what you want and there should be no hidden clauses.”

For the full Switching Aggregators report, look out for the August edition of the magazine, hitting desks next month.