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.

Introducer program ‘halved’, ANZ reveals

anz ta  anz ta
Charbel Kadib 5 minute read

ANZ CEO Shayne Elliott has revealed that the major bank has halved its network of introducers but has no immediate plans to disband the program in light of NAB’s decision.

In his appearance before the House of Representatives’ standing committee on economics, ANZ CEO Shayne Elliott was questioned over the bank’s home loan introducer program.

The program involves the payment of an upfront commission of 30 basis points of the value of a home loan to referrers from the professional services industry or from a community organisation.  

Home loan introducer programs (or referral programs) have recently been placed under public scrutiny in light of concerns over perceived conflicts of interest, which may not serve the best interests of borrowers.

Advertisement
Advertisement

In the final report of the banking royal commission, commissioner Kenneth Hayne said that introducers are “more clearly the face of the lender than the borrower”, adding that they “must only act within the confines of their prescribed role”.

Commissioner Hayne added: “Entities must have systems in place to ensure that introducers do not exceed this role. And entities should not regard the role of the introducer as modifying their own responsible lending obligations.”

Mr Elliott told Labor MP and deputy chair of the committee Matt Thistlethwaite that ANZ has reviewed and revised its program amid such scrutiny.

“We’ve halved the number of introducers that we’ve had over the last few years,” the ANZ CEO said.

“We’ve tightened up the governance of that program because there have obviously been a few serious questions around the potential for conflicts and other things.”

PROMOTED CONTENT


However, Mr Elliott said that ANZ is “not actively” pursuing plans to disband its program, despite NAB’s recent announcement that it will end its introducer payments program from 1 October 2019.

“We’ve tightened up the governance of it; we’ve halved the number of people that are accredited with us for introductions,” he said. “We’ve tightened up the processes around monitoring that.”

Mr Elliott added: “We believe there are conflicts in any channel that we use, whether it’s brokers or others. It’s about the degree to which we can manage those conflicts.

“We believe we’ve got a good process in place, [and] we think a lot is achieved through transparency.”

He concluded: “Customers who are referred are under no illusions that they’re being referred to ANZ because of that relationship and that we will be paying that person for the introduction if it’s successful.”

[Related: Major banks provide updates on introducer programs]

Introducer program ‘halved’, ANZ reveals
anz ta
TheAdviser logo
anz ta
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

more from the adviser
Diversity Creating a more inclusive broking industry

The need to create a more inclusive broking industry is more impo...

deposit saving Income inequity impacting home ownership: CoreLogic

Women would need 10 months longer to save for a 20 per cent depos...

email marketing How going virtual has boosted this broker’s client base

In the latest Elite Broker podcast, broker and podcaster Marcus R...

FROM THE WEB