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Jessica Darnbrough
More than 18 months after NCCP was introduced, brokers are still having a hard time coming to grips with the new regulation, with many arguing the legislation is “negatively” impacting their businesses.
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According to a recent straw poll conducted by The Adviser, 71.3 per cent of brokers believe NCCP has “negatively” impacted their businesses.
Of the 307 respondents, just 11.7 per cent of brokers believe the legislation has positively impacted their businesses, while 16.9 per cent say the regulation changes have had no impact on them and their bottom line.
But while a majority of brokers see the NCCP as a negative, Australia’s aggregation heads disagree.
Speaking to The Adviser, AFG’s Chris Slater said NCCP has improved the overall professionalism of the industry, which will ultimately have a positive impact on broker businesses in the long run.
“Brokers are more professional than ever before. And, provided we position ourselves in the right light, consumers will start to understand this and feel more comfortable using a broker for all their financial needs,” Mr Slater said.
“All the data we are getting currently suggests consumers are becoming more comfortable using brokers, as such, broker market share will go up. We think it is onwards and upwards for good brokers that want to do business.”
Mr Slater said AFG had enjoyed a 20 per cent increase in settlements year on year – a tremendous achievement given the current market conditions.
“Brokers have always been professional, but NCCP is really helping to drive this home to consumers, which will have a positive impact on broker market share and individual broker businesses.”
