Another bank moves on broker commissions

  • By Kate Weber

Adelaide Bank will be revamping its upfront commissions following recommendations from ASIC Broker Remuneration Review and the Sedgwick Report.

From January 17, 2019 the upfront commissions for new Adelaide Bank loans will be calculated based on the drawn amount less any offset balance as at the end of the month the loan settled, subject to a minimum payment of $400.

This follows MyState Bank announcing changes to its broker remuneration model as outlined in the same report, plus the Combined Industry Forum and the ASIC Broker Remuneration Review.

“While recognising the high calibre of our broker and mortgage manager network, we also acknowledge the need for our industry to evolve”,” Adelaide Bank head of third party banking Darren Kasehagen said.

“These changes will ensure that customers obtain affordable loans that meet their objectives and are appropriate in terms of structure and amount, and that we and our partners meet all compliance requirements,” he said.

“We remain fully and proudly committed to the mortgage broking and mortgage manager industries as we have been for more than twenty-five years.”