CommBank set to dump broker commissions
Mortgage brokers will be bracing for the elimination of trail commissions and even up front commissions, if the financial services royal commission's questioning of CBA CEO Matt Comyn is any guide.Discussing ASIC's 2017 report on mortgage broking, counsel assisting Rowena Orr asked, "What did you hope that the report would achieve"?Comyn said he "hoped it would recommend a specific commission model and structure."Orr: "A change to the commission model towards a fee model. Is that what you were hoping for?---Yes."A recommendation that that occur, which you could then adopt and the rest of the industry would also adopt?"---Yes."But that wasn't what happened?---No.Comyn eventually agreed that CBA was waiting for the royal commission to report its own recommendations on commissions, and to act on those.