But, although the bank pays less commissions for a moratorium broker, its chairman Rob Johansson does not immediately support the extortion of trail commissions together.
This royal commission of the bank has had another hot topic for the commission broker, because it is a concern that customers have bad results.
Here's the exchange of Johannson's lawyer assisting Rowena Orr:
Mrs Orr: "The people you deal with are not reimbursed?"
Mrs Orr: "With conflicts arising from commissions for commissions?"
Johanson: "But I think – and if I can say – I think an interesting document on conflicts – which is at the disposal of the Commission – shows the difficulty of actually structuring it in such a way as to achieve what I have said one of them is that which does not disturb people the ability to choose the way in which they want to get involved does not interfere with the ability of the system to continue to innovate and to reduce costs and these things, but to deal adequately with conflicts. I think it shows how difficult it is.
"Therefore, I think that the idea of an advance commission, even a volume commission, if it is properly detected – If the client is clear about their impact on their loan, if the responsibility of the person receiving the commission is clear and whether they work, then I think which relates to many of these issues. "
This led to Commissioner Keneta Haina who asked, "How do you think that they are working?"
Mr Johansson: "I'm clear they work for the client."
However, Johnson became the reason for his support for the prohibition of trawling commissions, expressing concern that the prohibition of trails does not lose what I think is – I do not understand any of the other described distribution systems. "
Mrs Orr: "Is this the reason to keep a commission?"
Mr Johansson: "If, as a result of banning trails, we will force customers to handle only banks and bank branches, I think this would be a very bad result."
Mrs Orr: "Why would this be the result of banning the trail commission?"
Mr Johansson: "It may not be a result, but I'm – I am – you know, if we completely ban it, we will not be the other end result of them."
Mrs Orr asked: "Well, what do you see as the value the client receives in exchange for a trail commission?"
Mr Johansson: "Well, this can happen only if the client – and the current problem is, in my opinion, customers – although there may be some form of formal disclosure, the customer does not know that trails are being paid and the amounts are due. Perhaps it must be the requirement that if – if a trail is added to the loan, the client informs it. Perhaps the consultant may have to do something – in fact, in relation to it. "