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Jessica Darnbrough
As the debate surrounding fee for advice continues to heat up, Smartline executive director Joe Sirianni has backed the current broking model.
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Last week at an MFAA roundtable discussion Aussie executive Director, James Symond said a fee for advice model would not become industry standard “today or tomorrow, but it will happen”.
“If the broking industry is to grow and prosper, then it needs to create a sustainable future and fee for advice will form part of that,” he said.
But Smartline executive director Joe Sirianni has said broker commissions are sustainable at their current level.
Since the Global Financial Crisis, broker commissions have been cut by an average of 30 per cent.
Despite the cuts, Mr Sirianni told The Adviser that commissions were not only sustainable, but reasonable for professional brokers.
“I don’t think the recent commission cuts have put the successful broker business in any danger. Quality business writers can still run a very profitable business at the current commission levels,” he said.
Mr Sirianni also said it was unlikely to see commissions cut further in the future.
In fact, he said the industry was more likely to see commissions grow.
“Of course I would like to see commissions go up, and I think there is every chance that could happen as competition between the majors intensifies. Every lender in Australia is chasing market share at the moment and they understand the broker channel is a great driver of business, provided they are remunerated appropriately for their services.”
