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Bank ‘very likely’ to reinstate trail in first year

by Nick Bendel8 minute read
The Adviser

Two banks may be just three months away from reinstating trail in the first year, according to Connective.

Director Mark Haron said Connective had been discussing trail with two particular banks, with one “very likely” to reinstate trail in the first year and the other “possibly”.

He told The Adviser that the first bank could change its policy within three to six months, which would then put “competitive pressure on [the other lender] to come to the party”.

“It’s certainly something that brokers feel very passionate about when I ask them what do they not like about these particular banks and what feedback I can give to these banks,” he said.


“Commissions don’t drive significantly where brokers put business, but a lender with a very poor commission structure may be excluded from that broker’s offering.”

Mr Haron said other aggregators had probably been having similar conversations with lenders.

He also said that all banks were reviewing their commission structures and considering whether to pass on more of their margins to brokers.

The Adviser reported last week that Citibank might consider changing its commission structure if the quality of loan submissions improves.

Westpac announced in January that the bank would increase its upfront commissions, while the Commonwealth Bank revealed in May that it would change its commission structure in the second half of 2014.

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