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ISCOVER
Jessica Darnbrough
The new regulatory environment is forcing brokers to work harder than ever before.
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Speaking at an ING DIRECT hosted roundtable in Sydney yesterday, FYI Group director Sam Ayliffe said his workload had increased dramatically ever since NCCP was introduced.
“Our workload, as a broker, has gone up four or five times since NCCP. Moreover, lenders, I believe, aren’t feeling the strain as much as we are. Regulation definitely weighs more heavily on the third party distribution channel,” Mr Ayliffe told The Adviser.
“While we have seen commissions improve slightly, any improvements are not in line with the extra work we are doing every day. We have had to put on extra staff and really over service our clients at some points.”
Mr Ayliffe said the vast majority of his day was now spent dealing with general questions from existing clients, rather than finding and servicing new prospects.
His concerns were echoed by Smartline’s Catherine Lezer.
Ms Lezer said she was seeing clients two or three times in order to meet the various compliance requirements.
Their comments are largely reflected in a recent The Adviser strawpoll, which found 1 in 5 brokers were struggling in the new regulatory environment.
Of the 404 respondents, 18.8 per cent said NCCP compliance was biggest deterent to finding new business prospects.
