Westpac is considering removing trail commissions for mortgage advisers while increasing upfront commissions.
Advisers argue that cutting trail commissions undermines ongoing client support and could make the industry transactional.
Many advisers emphasize that trail income enables them to provide long-term advice and service without charging clients extra fees.
Andrews’ business has clients that have been receiving advice from the company for 10 years.
Advisers will still aim to provide the ongoing support without charging clients a fee.
We’re trying to build businesses that support our client long term in line with regulations, which includes ongoing advice.
The whole point in lenders paying trail is to enable advisers to encourage ongoing advice to clients rather than just originating the loan.
Key Mortgages has been committed to supporting clients for nearly a decade, offering ongoing advice and tailored solutions without extra fees, even as industry changes occur.
Westpac may cut trail commissions, risking ongoing client support and advice. Key Mortgages delivers 10 years of trusted, ongoing mortgage advice without extra fees.
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