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By: Jessica Darnbrough
Speculation that aggregators may struggle to justify their existence in a post-licence arena would appear to have been quashed by the results of a recent broker poll.
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According to The Adviser’s latest weekly straw poll, more than 75 per cent of brokers have said they been supported by their aggregator in the run-up to regulation.
Of the 306 respondents, just 24.4 per cent said they received minimal support from their aggregator, reaffirming the relevance of aggregation groups in today’s market.
Vow Financial’s chief executive officer Jeff Zulman told The Adviser that the results of the poll were pleasing, and said the role of the aggregator would become more important as the industry heads into regulation.
“We want to provide all our brokers with the necessary support and guidance moving into the new licensed arena,” he said.
“Brokers are busy business people. As such, many haven’t had the time to look at the various requirements they will need to meet when regulation comes into play – this is where aggregators come in.”
Advantedge general manager of distribution – broker platforms, Steve Weston, agreed and said the aggregator’s role has never been more critical.
“Aggregators play a big role in providing brokers with the necessary tools to make sure they comply with the regulation,” Mr Weston told The Adviser.
“We have a very open dialogue with our brokers and are always looking for ways we can improve the services we offer them. We strive to provide our brokers with the latest regulatory guidance on the new credit legislation.
“While it has been said in the past that the role of the aggregator could become redundant, I don’t think this could be further from the truth today. We are constantly updating our platforms and services to make sure we are more relevant than ever.”
But while most brokers are seemingly very happy with the level of support they receive from their aggregator, Home Loans Etc mortgage planner Raun Burger said he would ideally like more information on licensing and compliance.
“Despite ASIC providing regulatory guidance on the new credit legislation, there are still a few grey areas when it comes to licensing and compliance,” Mr Burger said.
“Aggregators like AFG are trying to guide their brokers as best they can with the limited information available.”
