ASB and Sovereign increase upfront commissions
Ian Boyce says that the current commission structures were complex and these changes are about simplifying how they pay mortgage advisers. It is withdrawing its current commission options and LVR bonus and replacing them with "one simple commission structure; payable to all advisers for new home lending settlements to ASB at 0.85%."
"This change removes all current individual threshold gates, regional location bonuses and the current LVR bonus of 0.15% and therefore, the complexity involved in the current commission options."
The changes bring ASB into line with ANZ, although some advisers can be paid up to 0.95% at ANZ however very few achieve this as the thresholds to qualify are high.
The increase in payment rates also takes the market back to where it was in 2005 before the banks all slashed commission payments arguing they were unsustainable.
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