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Bank announces remuneration changes

by Charbel Kadib4 minute read
Macquarie Bank

A lender has announced changes to its broker remuneration model, which include changes to partial repayment clawbacks.

Macquarie Bank has announced that, as of 1 December, it will pay commissions on the loan account balance (net of any offset account balances), which will be calculated as at the last calendar day of the month the loan settles.

Macquarie has also announced that it will remove partial repayment clawbacks for loans that are not fully utilised within the first six months after settlement.

However, the bank has noted that partial repayment clawbacks will still apply to loans settled prior to 1 December 2018.

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Further, Macquarie has said that it will make a top-up payment based on the month-end loan balance 12 months after settlement, as long as it’s $50,000 or more than the amount used to calculate the original upfront payment.

The bank becomes the latest lender to change the upfront commission structure to the new model in the past few weeks, after NABAMP and Westpac announced similar changes.

The moves follow on from recommendations from the ASIC and Sedgwick reviews, which were backed by the Combined Industry Forum package of reforms.

The majority of lenders are expected to make the remuneration changes by the end of this year.

[Related: Bank announces new broker commission structure]

macquarie ta

Charbel Kadib

Charbel Kadib

AUTHOR

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

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