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ISCOVER
Jessica Darnbrough
ING DIRECT has confirmed it has no plans to change the way it pays commissions to its broker partners in the immediate future.
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Speaking at the bank’s Sydney broker roadshow yesterday, the lender’s head of partnerships broker sales Mark Woolnough told The Adviser that commissions changes were not on ING DIRECT’s agenda.
“Lowering commissions simply serves to lower the standard of broking in the industry and that certainly does not benefit us, the broker or the customer,” Mr Woolnough said.
“We rely on brokers to build our business. Currently brokers write about 75 per cent of ING DIRECT’s mortgage business, so they are understandably a vital channel to us. We are never going to build our business or help them build theirs by tweaking commissions.”
Commission payments have been put under the microscope over the past few weeks after both St George and Westpac announced they would restructure the way they pay commissions to their broker partners.
Late last month, Westpac said it would no longer pay trailing commission on all new loans that are more than 30 days in arrears, while St George cut first year trail payments and restructured upfront in a bid to reward elite brokers.
