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Jessica Darnbrough
The stakes are high for aggregators looking to poach new recruits with new research revealing over 40 per cent of brokers will “review” their contract within the next 12 months.
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According to The Adviser’s inaugural Switching Aggregators Survey, 44.8 per cent of brokers said they would look to switch sometime over the next year.
Just over 39 per cent said they would stay where they are, while the rest remained unsure.
Perhaps more interestingly, of the 400 plus respondents, more than 70 per cent said they had been approached by a different aggregation group within the last 12 months, as many look to increase the size and scale of their business.
Speaking to The Adviser, AFG’s Chris Slater said this was the most competitive he had seen the aggregation space in recent times.
“We have definitely seen the aggregation space heat up,” he said.
“I think we can attribute the increase in competition to a combination of things including the GFC, and the 30 per cent commission cuts. Brokers are looking to see what else is out there. They are serious about growing their business and know they have to have the support of a good aggregation group to do this.
“I think the level of competition in the aggregation space is good for the industry. The industry is in good shape at the moment thanks to the high level of support that brokers are receiving from their aggregation group.”
