A major lender and a challenger bank have announced changes to their commission structure, which will come into effect starting 1 December 2017 and 5 January 2018, respectively.
ANZ and AMP Bank have announced new changes to their commission structure, with ANZ’s changes effective starting 1 December while AMP’s update effective starting 5 January 2018.
ANZ stated that it will replace the Base Rate with a Consumer Customer Rate, which will be notified to brokers on a monthly basis. Under asset finance loans, the Consumer Customer Rate will be the maximum annual rate charged to customers.
Brokers will be entitled to discount the Consumer Customer Rate at their discretion by up to 200 basis points; however, the asset finance commission (AFC) will be cut in proportion to the discount offered to customers, and no commission will be paid to brokers if the discount exceeds 200 basis points.
ANZ has also decided to split the customer Other Goods into two categories: Other Goods Category 1 or OG1 (e.g., caravans, trailers and marine) and Other Goods Category 2 or OG2 (e.g., motorcycles, jet skis).
All consumer transactions must also be submitted on the consumer pricing Source of Business (SOB).
Meanwhile, AMP Bank will be changing the way it pays commissions for loans that are internally refinanced.
Changes will be processed as new loans for loans that are restructured or refinanced by existing customers, which means that broker commissions will be based on the net difference of the new and outgoing loan, rather than only being based on the new loan limit.
Further, AMP Bank’s changes mean that no commissions will be paid to brokers if the new internally refinanced loan limit is less than the original loan being financed. Standard clawback rules will remain unchanged and continue to apply to the original loan.
[Related: Bank slashes interest rates]
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