Banking Royal Commission results

Discussion in 'Property Market Economics' started by Ronald86, 1st Feb, 2019.

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  1. dragon

    dragon Well-Known Member

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  2. Terry_w

    Terry_w Broker, Lawyer, Tax advisor Business Member

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    Who woudl think someone with a 2 day certificate would earn more than someone with a 5 year degree, and a masters degree!
     
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  3. Terry_w

    Terry_w Broker, Lawyer, Tax advisor Business Member

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    Anyone know what happened to the financial planners when they were banned from taking commissions? How did it effect that industry?
     
  4. willair

    willair Well-Known Member Premium Member

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    They went out and become 2nd hand car dealers,till they changed all the laws about car finance and the way some use calculators..
     
  5. albanga

    albanga Well-Known Member

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    Great honest post Ivan.
    I personally know some MB’s who are putting on a brave face and others who have accepted fate and planning an exit.

    I admire those putting on a brave face but the reality is.....why?
    Trail will be gone, that is a guarantee and unless banks increases upfronts (hahaha) then BANG 50% revenue gone (assuming the value of a trail on a standard loan...not including the value of a trail book which is also lost).

    Now throw in the raft of recent changes and likely more to come making the time for processing a loan has increased 2 fold (not to mention increased declines).

    And let’s not even mention fee for service.

    So my question is why? Why would someone put themselves through operating a business under these conditions with this microscope being so heavily compliance dominated.

    The reality is those that want to stick it out are going to have to work much much much harder to try and break even with what they are currently doing.

    When you work this out I can probably guarantee that your hourly rate becomes equivalent to a bank teller....probably less.

    Don’t get me wrong I admire the determination but this is a fight that won’t be won.
    I thought Australia was better than this. I’m ashamed and disgusted at the level of corruption that has occurred. I honestly feel sick to my stomach.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Most of them directly went and worked for the banks, or they worked for businesses directly owned and controlled by the banks.

    They then were given sales targets and bonus' to match, leading to incredibly bad behaviour which was one of the precursors to the Royal Commission into Banking.

    Restrict ability to earn income -> Bad behaviour in advisors -> Review of bad behaviour and further restrictions on earning income

    Perhaps there needs to be a Royal Commission that investigates why the outcomes of Royal Commissions never meet expectations?
     
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  7. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  8. Tofubiscuit

    Tofubiscuit Well-Known Member

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    How many Aussie Home Loan franchisees or independent brokers is there who may have borrowed against loan portfolio / trail and bought a new business?
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Good post but I don't entirely agree with everything you've said.

    Trail commission is certainly dead and good as buried. No doubt in my mind about this at all.

    A lot of brokers are making alternate plans and will be out regardless of what happens.

    Upfront commission still has a chance. It probably comes down to which government puts the legislation in place. Even if it is preserved, there's still a risk of it being abolished later.

    If upfront is preserved, then it comes down to how much? The legislation is probably not going to dictate a figure. Aggregators are already talking about increasing upfront commissions to the point where brokers can remain viable. Essentially in line with most other countries.

    At this point I'll wait until we see the actual legislation.

    One thing I an certain about. I will not sell my soul and go work for a Big 4 bank.
     
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Good chance that Aussie franchises will evolve into what RAMS is. RAMS is essentially Westpac money with poor lending standards because it's under a different label.
     
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  11. Tofubiscuit

    Tofubiscuit Well-Known Member

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    But what about the poor guy who bought the franchise 3 years ago
     
  12. albanga

    albanga Well-Known Member

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    Your a legend Peter and it’s people like you and others on here which is why I’m SO upset and angry.

    I really hate to have a defeatist attitude but I feel so let down, it’s like no matter what, the Banks can’t lose. A RC into bank corruption ends with their competition getting destroyed. It’s.....it’s beyond comprehension.

    But hey your the bad guys. Forgot the thousands of hours you all put in here giving free advice to the uneducated. I consider you and Terry and many others in here true mentors of mine and I’m genuinely shattered for you all.
     
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  13. standtall

    standtall Well-Known Member

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    Based on a handful of complaints (still our low default rate is envy of the world), Royal commission is effectively proposing putting 25,000 people out of their jobs/businesses.

    Mortgage brokers were the easy targets - may be you guys needed a union and a few lobbyist in Canberra.

    I know a broker who had just put his two kids into a private school (literally 2 days before the findings came out) and he is now planning to send them back to local public school from next term.

    Pick your next career wisely!

    P.S. I think mum dad investors are next in line
     
  14. The Y-man

    The Y-man Moderator Staff Member

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    When people asked me a few weeks ago whether I was still going to hold onto bank shares, I stated, "I am sure they will continue to innovate and find new ways to make money". Sadly it looks as if I was right in a way, but they did not have to innovate very much..... :oops:

    The Y-man
     
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  15. Air_Bender

    Air_Bender Well-Known Member

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  16. hieund85

    hieund85 Well-Known Member

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    Has he ever mentioned if the customer pay flat fee model (to both brokers and banks) is adopted, saving the bank billions, would they pass that saving to customers through rate reduction?
     
  17. albanga

    albanga Well-Known Member

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    Hahahahaha I love a good Thursday morning funny.
     
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  18. hieund85

    hieund85 Well-Known Member

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    It's hilarious when a RC into the misconduct of banks end up quoting and adopting a number of statements/suggestions from the biggest bank's CEO.
     
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  19. SatayKing

    SatayKing Well-Known Member

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    WTF does the occupation of a person got to do with the impact on their superannuation or am I missing something here?

    https://www.canberratimes.com.au/bu...ion-changes-mean-for-you-20190205-p50vq5.html

    As an aside I am pleased the Commissioner took on board my thoughts of a week or so ago that super should be linked to the person and not the employer. Bragging rights are mine I tell you!
     
    Last edited: 7th Feb, 2019
  20. Francesco

    Francesco Well-Known Member

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    I imagine industry superannuation funds will want to cling on to their captive worker contributors on the basis that they provide customised services within the industry, such as through workers' compensation from insurance.