One of the major banks has given its commitment to the broking channel that its commission structure will remain unchanged.
NAB has confirmed that there it will not restructure its Homeside commissions in the “foreseeable future”.
In an exclusive interview with The Adviser’s Market Focus, NAB Broker’s general manager of distribution John Flavell said the major was currently very pleased with its stepped trail commission structure and had no plans to revise broker payments.
“When we set our commission structure up back in 2007, we did so with the expectation that those structures would be sound for five to seven years. And we believe there is no reason for us to make any changes to those structures. The changes brokers will see is an increase in their trail over the coming years.”
Mr Flavell’s comments come just weeks after St George, Westpac and ANZ all announced plans to restructure broker commissions.
Earlier this year, St George announced its plans to abolish the 0.15 per cent first year trail payment, while Westpac said it would no longer pay trailing commission on all new loans that are more than 30 days in arrears.
Meanwhile, just days ago, ANZ said it would trim some of its bonus payments to brokers.
But while it seems there is a growing trend among brokers to cut commissions in light of the current economic environment, Mr Flavell said the lender was more committed to its brokers than ever before, as such it is important that brokers are remunerated properly.
Under NAB Broker’s stepped trail commission structure, brokers can earn up to 35 basis points in trail every year.
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