Reaffirmation, not re-launch, for Sovereign

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Sovereign is looking to grow its home loan business and has reached out to brokers with a number of initiatives.

Monday, August 1st 2011, 7:22AM

by Benn Bathgate

The company has been out on the road "to reaffirm we are committed to advisers," said general manager, adviser distribution, Patrice de Marigny.

"The home loans offering has been a little lacking since probably the middle of the global financial crisis (GFC), and it was just a reinforcement that we will support the product and enhance it so we've got a complete suite of products for advisers."

De Marigny said that with the backing of parent ASB, Sovereign is especially eager to grow its home loan operations.

To that end the company announced a number of new initiatives including interest rate ‘specials' that would be advertised to advisers via email, an initiative de Marigny said was influenced by the retail sector.

Recognising the difficulties in the wider housing market - particularly Auckland - Sovereign has also lengthened its pre-approval to 180 days and is in talks with ASB over offering bridging loans.

The company also told advisers it would be making an announcement about an initiative in the combined mortgage/risk space on August 1.

The roadshows also saw Sovereign commit to their adviser model relationship, highlighting the benefits of the trail commission they offer and that fact that the adviser retains client ownership.

The company also stressed an eagerness for advisers to engage directly with feedback on products and processes as well as potential gaps in the market.

"They [advisers] keep us honest and they keep us in the loop as to what the markets doing, what's required," said de Marigny.

"So the more information we can get from them and the more participation, the better we both do."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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