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Broker work may evolve

Broker work may evolve

(29 April 2008 – Australia) NAB is looking to gather support from brokers and broker groups to evolve the responsibility of the broker to become a wider financial adviser. Nationally, NAB has been speaking to around 2,000 brokers and broker groups for this reform. The intent is to reward those brokers that can cross-sell other NAB financial services products including insurance.

Westpac recently cut up-front commissions from 70 basis points to 50 basis points and cut trailing commissions from 25bp to 15bp.

The move by NAB is quite different, focusing on restructure rather than reduction.

Matt Lawler, regional general manager of NAB’s Broker division said that getting licensed and skilled-up is part of the next era, indicating that brokers will need to get advisory licences in the future.

He added that brokers have a role to play in terms of the clients' cash flow and budgeting.

Both CBA and ANZ have indicated that a review is underway and it is likely that they will follow Westpac’s decision to reduce commissions.
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