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Important changes to the Bankwest broker commission payment model

Bankwest mag

To align with evolving industry practice and regulator expectations, Bankwest is making some important changes to its broker commission payment model.

The changes, which will be effective on settlements from 1 July 2018 include:

  • The reintroduction of Year 1 trail commission.
  • The reduction of trail commissions in Year 3 to 0.15% and from Year 5 and onwards to 0.20%.
  • The adoption of the Combined Industry Forum (CIF) recommendations on paying commissions on utilised funds and net of offset.

Bankwest is discussing with aggregators the exact changes to utilised funds and we will be sharing further details closer to 1 July.

There will be no changes to the up-front commission rate. All details in the table below are exclusive of GST.

Bankwest commission rates

Current
commission rates
Commission rates effective
1 July 2018
Upfront 0.70% 0.70%
Year 1 0.00% 0.15%
Year 2 0.15% 0.15%
Year 3 0.20% 0.15%
Year 4 0.20% 0.20%
Year 5 onwards 0.25% 0.20%

 

Commenting on the industry recommendations, Bankwest GM for Third Party, Ian Rakhit said:
“Bankwest has been a very long-standing supporter of the Broker industry, going back to the very start some four decades ago and we remain committed to Brokers as a channel of choice for customers.
He further added “We support the current up-front and trail model as well as the improvements to the model outlined in the ASIC review and the Combined Industry Forum (CIF) recommendations.
“We understand the lack of Year 1 trail has been outstanding for some time and we are pleased to reintroduce this to bring us back in line with the market. Our contract stipulates that trail commissions represent payment for continuous customer maintenance and services and we believe trail remains warranted for Brokers to ensure ongoing support is provided to customers they refer to Bankwest.”

Want to know more? Speak with your Bankwest BDM today, or contact one of their support teams for more information at bankwest.com.au/brokers.

Not accredited with Bankwest yet? Talk to your local Broker Support Manager or contact the Connective Accreditations Team at accreditations@connective.com.au