Recently one of our Directors met to present and discuss with Federal MP Andrew Hastie after developing the concept to write a whitepaper in conjunction with our internal Operations and Compliance Manager. The paper references ‘How Brokers keep the market competitive and honest’ and how ‘A quality broker always has their client’s best interest at heart’ in a bid to get the truth out there about why brokers are doing so well.
The 10-page paper provides background to the broking industry and the ongoing reports and commissions that have been looking at the sector and aims to “highlight some of the shortcomings” with them and “offer a more balanced industry-accepted view”.
The scope of the whitepaper report is therefore “limited to discussing value of using a broker in promoting good consumer outcomes and the importance of maintaining a commission-based remuneration structure (including both upfront and trail commissions)”.
It reads: “Competition is key to promoting good consumer outcomes. Removing the broker channel would mean the market share of the big four banks would once again dominate, and consumers would struggle to access second-tier lenders.”
Speaking about the reasons for releasing the paper, Mr Milligan said: “There have been a number of brokers approaching us asking us to release the whitepaper because they want to do a similar thing and sit down with their local and federal politicians about the broker proposition. So, rather than reinvent the wheel, we are happy to share our intellectual property.”
He continued: “I think brokers want to highlight the positives of using a broker, rather than the negative attention that has been playing in the media. So, we’d like to show the difference between brokers and financial planners and accountants, the difference in risk appetite for the different sections of the financial industry and highlight the many things that brokers don’t get paid for. It’s not all about what we get paid for — we do things that we don’t make money on but is part of our service offering to our clients.”
Special thanks to Steve Milligan and Kirsty Dellow-Pawski for their work on producing this Whitepaper. For your clients to book a free consult to review their overall strategy and goals in relation to their finance needs, get in touch with your broker, call (08) 9367 4222 or fill out the form on this page.