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Jessica Darnbrough
The collapse of Refund Home Loans shouldn't threaten the existence of sub-aggregators.
Speaking to The Adviser, head of LJ Hooker Financial Services Peter Bromley said sub-aggregators will always have a place in the market, provided their service offering outshines that provided by larger aggregators.
"The Refund saga has definitely put sub-aggregators under the spotlight, but I still think these types of groups have a very valid place in the industry," he said.
"For example, at LJ Hooker, we have been able to provide our brokers with compliance guidance that is unmatched by the larger aggregators.
"We have had brokers coming back to us this year and saying: thank you for helping me understand the legislation and successfully meet my obligations."
Mr Bromley said sub-aggregators that add additional value to a broker's business will always have a place in the industry.
But not everyone agrees. AFG's executive director Kevin Matthews told The Adviser that sub-aggregators with limited scale and size will find it hard to compete with the larger groups moving forward.
"It is a hard market to raise capital in and if they can't do that, they will not be able to remain in the industry long term," he said.
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