About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 14th, 6:30PM
rss
Latest Headlines

Westpac makes major commission changes

Westpac has made a series of sweeping changes to its commission structure for New Zealand mortgage advisers, including removing discretionary quarterly commission payments.

Friday, June 29th 2018, 9:02AM

TMM Online understands the lender has contacted bosses of New Zealand's biggest adviser groups to inform them of wide-ranging changes due to come into force in July.

The bank is increasing upfront commission to mortgage advisers from 45 basis points to 60 basis points, and removing discretionary commissions previously paid up to 15  basis points quarterly.

Westpac is also toughening up commission clawback periods. If a loan is repaid from 0-16 months after it is taken out, there will be 100 per cent clawback. If a loan is repaid between 16-26 months 50 per cent of commission will be clawed back.

It comes after Westpac conducted a major review into the way it pays commission to financial advisers. It is unclear whether some of the changes were motivated by Australia’s Banking Royal Commission, which has placed a spotlight on commission models across the Tasman.

Westpac informed the adviser market about the changes on Thursday after discussions with the country’s biggest adviser groups.

In a statement, a Westpac spokeswoman said: "These changes are intended to simplify the commission structure and administrative processes for our mortgage advisers as well as streamline our internal operations. We expect the increased upfront commission to be positively received by the industry." 

Commission has been a talking point in Australia for several years. Last year, a review by the Australian Bankers' Association recommended commissions for mortgage brokers be replaced with a fee-for-service model. During this year’s Australian Royal Commission, bank executives, including those at Westpac, were grilled about their relationships with financial advisers.

Closer to home, commission has also become a more prominent talking point. The Ministry of Business, Innovation & Employment has proposed that mortgage advisers make information about commissions they receive publicly available. Advisers have hit out at the proposals, which would not force banks to reveal their own bonus structures.

Tags: Commission MoBIE Westpac

« OCR to stay on hold Mortgage lending hits two year high »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.55 4.79 4.99
ANZ Special - 4.05 4.29 4.49
ASB Bank 5.80 4.44 4.69 4.89
ASB Bank Special - 3.95 4.29 4.49
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.10 4.29 4.49
BNZ - Std, FlyBuys 5.90 4.69 4.79 4.99
BNZ - TotalMoney 5.90 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.70 4.85 -
Housing NZ Corp 5.80 4.69 4.79 4.79
HSBC Premier 5.89 3.99 4.19 4.69
HSBC Premier LVR > 80% - 3.79 - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.80 4.59 4.69 5.09
Kiwibank 5.80 4.55 4.69 4.99
Kiwibank - Capped - - - -
Kiwibank - Offset 5.80 - - -
Kiwibank Special - 4.05 4.29 4.49
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.30 4.86 4.94 5.30
RESIMAC Special - - - -
SBS Bank 5.89 4.85 5.05 4.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 4.19 3.95 4.49
Sovereign 5.90 4.45 4.69 4.89
Sovereign Special - 3.95 4.29 4.49
The Co-operative Bank - Owner Occ 5.75 4.10 4.35 4.49
The Co-operative Bank - Standard 5.75 4.60 4.85 4.99
TSB Bank 5.80 4.45 4.69 4.99
TSB Special - 3.95 4.19 4.49
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.69 4.79 5.19
Westpac - Offset 5.95 - - -
Westpac Special - 4.15 4.29 4.59
Median 5.89 4.50 4.69 4.79

Last updated: 2 December 2018 8:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com