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ISCOVER
Jessica Darnbrough
ANZ has announced plans to alter broker commissions from 1 February 2011.
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There had been speculation that ANZ planned to cut its first year trail, but according to industry sources, after consultation with aggregation heads the bank decided to leave trail alone and instead settled for trimming commissions around bonus payments.
Under the new commission structure, brokers will retain their current base commission of 0.500 per cent, however the total commission they can earn in the first year, including bonus payments, has been reduced from 0.7 per cent to 0.675 per cent.
The Adviser contacted ANZ after receiving a numerous emails and telephone calls from disgruntled brokers.
Speaking about the commission changes, an ANZ spokesperson said the bank had only sought to change its broker commission structure after holding lengthy discussions with the industry’s brokerage and aggregation heads.
“ANZ is reshaping its home loan portfolio to secure sustainable higher returns and lower risk profile,” the spokesperson said.
According to the spokesperson, ANZ’s decision to alter its broker commissions will benefit quality brokers.
Under the adjusted commission structure, brokers that deliver high value and low LVR loans can expect various sales incentives.
From February 2011 on the bank will offer a sales volume incentive of 0.075 per cent to its high achieving brokers.
“The broker market remains an important and integral part of ANZ’s business. We greatly value the relationships we have built with brokers over the years and look forward to continuing to work closely and ensure a sustainable industry," the spokesperson said.
