Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Brokerage to ‘double-down’ in preparation for change

brokers business people brokers business people
Reporter 4 minute read

A Sydney-based broker has outlined the way in which his brokerage is preparing for potential changes to the broker remuneration model.

Speaking to The Adviser, director of Catalyst Advisers Stephen Michaels said that his brokerage has developed a strategy to offset losses incurred by a potential change to the broker remuneration model off the back of the financial services royal commission. 

“We've kind of looked at it from different perspectives,” Mr Michaels said.

“One is already kind of up and running – diversifying the income of the business by establishing a full-scope financial planning and advice business, which was always a way to hedge against direct impact on our commissions. 

Advertisement
Advertisement

“Also, if the model ever changes to either not include trail or to a flat fee for a loan, irrespective of loan amount, it’s just as simple as doubling down on volume.”

However, Mr Michaels said that there’s no “silver bullet” or “golden goose” that would completely offset risks.

The Sydney-based broker also highlighted the competitive contribution of the broker channel, warning that an alternative remuneration model would need to adequately reward brokers to prevent a significant industry exit.

“Brokers will be important regardless, solely because of competition in the industry,” he said.

“If the broking occupation didn't exist, then the consumer wouldn’t benefit. You’d have the big four banks taking control, so I think our occupation is very important in the industry.

PROMOTED CONTENT


“The remuneration structure will change eventually, but it will have to be enticing enough to keep the top 10-20 per cent of brokers in the industry.”

[Related: Brokerage launches new mentor accreditation program]

Brokerage to ‘double-down’ in preparation for change
brokers business people
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

brokers business people

 

more from the adviser
handshake news Ex-broker head to lead MyState banking

A former broker head has returned to MyState Bank to tackle turna...

BBS 2021 ta SA/NT’s top brokers crowned

The leading brokers in South Australia and the Northern Territory...

Paul Kearney ta AFCA recruits from ME Bank

The complaints authority has named a new executive general manage...