FAMNZ responds to speculation Westpac NZ is scrapping trail

The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) has responded to discussions between Westpac and aggregators around possible plans to scrap trail commissions with a call to the bank to ensure any plans are fair and reasonable.

FAMNZ managing director Peter White AM has acknowledged there is precedent as some other banks do the same.

“We can’t interfere in Westpac’s commercial arrangements but the industry must be given fair notice of any change,” he said.

“Westpac needs to be very clear as to what is happening as there is too much speculation in the market place at the moment.

“Advisers are rightly concerned about their future as many have trail incomes built up over 10 years of supporting Westpac.”

Mr White also called for past trail commissions to be protected.

“We believe that if this change is inevitable, Westpac must grandfather the past until those loans expire.

“They must draw a fair and reasonable line in the sand if things are to change.”

He also said that while there is current discussions with aggregators, he is disappointed the bank didn’t consult the industry properly before making any decisions, if in fact a decision has been made.

“We will be monitoring this very closely and advocating for the rights and businesses of advisers.

“Not only should any changes that are made be in the interests of Westpac’s customers, but the bank also must ensure advisers, who are an important channel for them, are supported.”