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Adelaide Bank this afternoon revealed a new “simple, predictable and sustainable” broker commissions structure.
Under the commissions restructure, broker groups will have the option of an ‘all-trail’ model, which includes a 0.30 per cent trail from the first year and no upfront commission.
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Alternatively, brokers can choose a 0.50 per cent upfront commission with a 0.15 per cent trail from year one onwards.
The changes will come into effect September 1.
Tim Piper, Adelaide Bank chief general manager of wholesale mortgages, said that business partners had recognised the need for the bank to change commissions.
However he concurred that groups were concerned about the degree of complexity and uncertainty that had appeared in other lenders’ restructures.
“We believe this simpler and more efficient commission structure more closely aligns the needs of the bank with our business partners and ensures that the wholesale mortgage industry is in a better position to deal with the current downturn in the economic cycle,” Mr Piper said.
“Though the new arrangements do reflect a reduction in commission rates, we believe the simplicity and predictability of the new structure provides an attractive and competitive alternative for our business partners,” he said.
Published: 02-07-08
