Another blow to advisers over trail commissions

ASB is in discussions with mortgage adviser partners AIA NZ and NZHL about killing off its iGo Home Loan product in July next year. It is the bank’s only home loan offering advisers upfront commission and trail.

The bank describes the Go Home Loan as a legacy product that is specific to those channels. It is primarily accessed through AIA NZ and NZHL accredited advisers. NZHL is part of the Government-owned Kiwi Group Capital also the parent company of Kiwibank. It stands as a entity with its own independent board.

Lawyers on all sides are working through the implications for the partnerships. If ASB does scrap the product it means from July next year advisers will be able to offer only the bank’s products for new or restructured lending.

However, if a borrower has a Go Home Loan and is not making any changes, ASB will continue paying trail commission.