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Jessica Darnbrough
The collapse of Refund Home Loans last year should force brokers to seriously consider the strength of their aggregator, one aggregation head has claimed.
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Speaking to The Adviser, National Mortgage Broker’s Gerald Foley said brokers should understand that they could potentially be impacted through a change in ownership or a disruption in their aggregator’s business.
As a result, Mr Foley said that all brokers considering switching aggregators in the future should consider whether or not their prospective aggregator is a group that they are comfortable with – a group that will protect them and their business.
“The ownership structure of many aggregators today is largely unknown to their broker members and should be better understood prior to making a decision to join,” he said.
“For instance, who are the shareholders, does the business share the same values, do they promote this culture through the business and are there any potential issues with the company or the shareholders that could impact or necessitate a change or disruption to ownership?
“So when considering your current or prospective aggregator, ask yourself – “Is this a group I’m comfortable with, and should things go wrong, how will I be protected”?”
But while Mr Foley believes it is crucial for brokers to research any prospective aggregator’s financials, it seems brokers do not agree.
According to The Adviser’s inaugural Switching Aggregators survey, less than one third of all respondents said an aggregator’s “ownership structure” was important.
Of the 400 plus respondents, 20 per cent said “ownership” was one of “a few considerations” and instead highlighted “software” as the most important factor in switching aggregators.
