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Jessica Darnbrough
NAB, CBA and ANZ have been quick to reassure brokers that they have no plans to change commissions in the immediate future.
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Last week both Westpac and St George made changes to their commission structure, and there has been growing concern among the industry that the others could follow suit.
However, CBA’s executive general manager third party and mobile banking Kathy Cummings dismissed the concern as speculative and said the bank has “no plans to review its current arrangements”.
“CBA will continue to focus on quality metrics to help brokers to maximise their revenue,” Ms Cummings told The Adviser.
NAB Broker’s general manager distribution John Flavell echoed Ms Cummings comments, stating that NAB was currently happy with the changes it made to its commissions three years ago.
"The Homeside stepped trail commission structure, launched three years ago, now offers eligible brokers the opportunity to earn a trail commission of 30 basis points this year, stepping up to 35 basis points in 2011,” Mr Flavell told The Adviser.
“Most importantly, our ramp trail applies to the 'life of the customer' not the 'life of the loan'. Furthermore, we will continue to share margin where we make margin with our valued broker partners and maximise the long-term value of their businesses.”
ANZ was also quick to dismiss speculation that the bank was ready to move on commissions.
A spokesperson for the bank told The Adviser that the major had no plans to change its commission structure in the immediate future.
However, interestingly, the spokesperson also added that the bank would continue “to watch its competitor’s actions with interest and will continue to carefully monitor the economics of the broker channel”.
