Australian Broker 13.15

NEWS FBAA goes global To support broker commissions P4

ANALYSIS Brexit: Boom or bust?

The impact of Brexit on the property market P10

BUSINESS STRATEGY 20 myths about growth Lessons from a business coach P14

AUGUST 2016 ISSUE 13.15

OPINION Confusing times

Why borrowers need brokers more than ever P16

INDUSTRY SPOTLIGHT Commercial sense

Two brokers on what you need for a move into commercial P20

GREG PENNELLS Greg Pennells on the launch of Purple Circle Financial Services and its unique new offering that business-savvy brokers can’t wait to take up P18

CONSUMER INSIGHTS Debt agreements reach all-time high

In NSW, Qld and WA in June quarter P26

BORROWER SNAPSHOT 2

NEWS

ASSOCIATIONS

REGULATION

LENDERS

FBAA goes global to support broker commissions P4

Further rate cuts imminent, but AUD still afloat P6

Homeloans and Resimac merge

v $250,000 - $699,999 CARDS, MORE FEES, RICHER BANKS MORE CREDIT

P8

BROKERNEWS.COM.AU EDITORIAL Editor Madelin Tomelty News Editor Julia Corderoy Journalist Maya Breen

$12.5bn

Amount households and businesses were charged in bank fees in 2015

This is an increase of

3.5%

from the previous year

$1.5bn Household bank fees attributed to credit cards

This is an increase of

6.6%

Production Editor Roslyn Meredith

ART & PRODUCTION

500,000 More credit cards were issued in 2015 than in 2014

SURVEY REVEALS AUSTRALIANS ARE PAYING TOO MUCH ON MORTGAGE INSTALMENTS the last few years, it was high time mortgage holders reviewed their home loans.

“Our survey shows that many homeowners could be missing out on great deals and potentially big savings. That’s money going to the banks and other lenders that Australians could instead be investing back into their mortgages or spending on things like holidays, eating out or their kids’ education,” Symond said.

“It’s not surprising that homeowners don’t know where to start and think refinancing is time-consuming, but that’s where a mortgage broker can help. Aussie brokers are now doing more refinance home loans than any other type of home loan, and that’s because our customers want an expert who’s on their side to get it done for them.”

Designer Martin Cosme Traffic Coordinator Lou Gonzales

Sales Manager Simon Kerslake Account Manager Rajan Khatak Marketing and Communications Manager Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Publisher Simon Kerslake Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

EDITORIAL ENQUIRIES

from the previous year

Source: RBA

Nearly half of Australian homeowners are missing out on the chance to save $240 per month by refinancing and getting a better deal, according to a new report commissioned by Aussie Home Loans.

The survey of more than 1,000 mortgage holders showed that 45% had never refinanced their home loans, with the most common reason (29%) being that they thought they wouldn’t get a better deal. Eighteen per cent said they wouldn’t know where to start, while 17% indicated it was too time-consuming to investigate other financing options.

Of the 53% of respondents who have refinanced, on average they did so more than two and a half years ago. Aussie chief executive James Symond said that with mortgage rates dropping significantly over

Design Manager Daniel Williams

SALES & MARKETING

Three quarters of respondents said they didn’t know how much money they could save by refinancing; however, Aussie’s data shows its refinance customers are saving approximately $240 every month.

Younger Australians – aged 18 to 34 – were most keen on the savings offered by refinancing, with over half saying they would use the savings to pay down their mortgages.

“There is red-hot competition in the home loan market, and lenders are fighting for market share, with some offering attractive incentives to get customers to switch their home loan,” Symond said.

“It’s just smart for people to investigate whether they can get a better deal, whether by refinancing or simply asking your lender for a better rate,” he concluded.

Madelin Tomelty +61 2 8437 4792 Madelin.Tomelty@keymedia.com.au

SUBSCRIPTION ENQUIRIES

tel: +61 2 8O11 4992 fax: +61 2 9439 4599 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES

Simon Kerslake +61 2 8437 4786 simon.kerslake@keymedia.com.au Rajan Khatak +61 2 8437 4772 rajan.khatak@keymedia.com.au Key Media Pty Ltd Regional head office, Level 1O, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Toronto, Manila This magazine is printed on paper produced from 1OO% sustainable forestry, grown and managed specifically for the paper pulp industry Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss. Australian Broker is the most-often read industry publication, according to independent research carried out by the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia in December 2008. The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.

ASSOCIATION HAPPENINGS 4

DATES TO WATCH

FBAA GOES GLOBAL TO SUPPORT BROKER COMMISSIONS The FBAA is looking overseas to gather further evidence to help argue its case that broker commissions paid in Australia are appropriate when compared to those paid in similar international markets.

The ASIC report and recommendations to government based on its mortgage broker remuneration review are not due until the end of this year; however, the FBAA has said it is not taking any chances.

The future of trail commissions was brought into question at the FBAA’s National Tour held in June, when Steve Weston, former CEO of mortgages at Barclays in the UK and former general manager of broker platforms at NAB, pointed out that Australia was one of the last markets in the world to pay trail commissions.

“The other big, big difference is on remuneration – and that is something we should be concerned about with ASIC because regulators will speak to their international counterparts,” Weston told brokers.

However, FBAA CEO Peter White said there was

“nothing exceptional” about the way the baseline commissions were structured in Australia’s broking environment – and a global review of consumer home loan broker commissions in the UK, USA and New Zealand markets would highlight this.

“This research will clearly show that our commission structure is of an international standard, creates the right consumer outcomes, is commercially fair and appropriate for the extensive work done pre- and post-settlement for the bank and the client by the broker,” White stated.

He added that the FBAA would review the three internationally relevant markets while further evidence would be gathered on the broker commission market in Canada.

“This will form part of our arsenal and strengthen our industry position that the current commission structure is fair and equitable and in no need of a radical overhaul.”

“We will continue communications with the federal minister,” White concluded.

Nerida Conisbee

P10

AUGUST

3

What: MFAA: SOLD Where: Vibe Hotel, Darwin Details: A program for all brokers to engage in issues that can enhance their business performance. The industry initiative covers the four pillars of social responsibility; opportunities for women; lifestyle, wellbeing and mental health; and diversity and inclusion.

AUGUST

WHAT THEY SAID...

“London is one of the main destinations for Asian property buyers. Again, this uncertainty may lead them to look at other destinations such as Australia. Australia is going to be seen as increasingly safe, particularly compared to this volatile environment”

A rundown of the next fortnight’s events

John Kolenda “… while we are unlikely to see interest rates go back to pre-GFC levels any time soon, the confusing lending landscape means many thousands of mortgage holders may be paying more than they should be for their home loan, without even realising it”

P16

Tim Lawless “… having an understanding of the typical profile of the Australian property investor is important, particularly with regard to where investors are most active and what contribution they are making to the overall national economy”

P22

4

What: My Local Broker: The Chief Roadshow Where: Crown Perth, Burswood Details: Brokers will be introduced to Chief, the new-age broker software designed by brokers that will save brokers time on repetitive tasks they perform every day, from compliance documents and manual signatures to managing/tracking leads and reporting.

AUGUST

10 What: MFAA: SOLD Where: Fenix Events, Richmond, Melbourne Details: A program for all brokers to engage in issues that can enhance their business performance. The industry initiative covers the four pillars of social responsibility; opportunities for women; lifestyle, wellbeing and mental health; and diversity and inclusion.

REGULATORY ROUNDUP 6

WORLD NEWS

AUSSIE DOLLAR ‘STUBBORNLY HIGH’ A$/US$ forecast comparison

A$/US$

A$/US$

0.85

0.85 Forecasts 0.80

0.80 NEW ZEALAND RESERVE BANK NZ PROPOSES NEW LVR RESTRICTIONS The Reserve Bank of New Zealand has released a consultation paper proposing changes to loan-to-value ratio (LVR) restrictions, Digital Finance Analytics has reported. The restrictions have been proposed in a bid to further mitigate risks to financial stability arising from the current boom in house prices in New Zealand. The proposals simplify the current LVR policy by applying two nationwide speed limits for owner-occupier and investor lending.

In an online article, Digital Finance Analytics’ Martin North wrote that New Zealand’s house prices had increased by around 50% since 2010, driven by strong immigration, low mortgage rates and sluggish housing supply.

“With house prices becoming increasingly disconnected from underlying household incomes and rents, there is significant potential for house prices to fall very rapidly if the factors currently supporting the market reverse. Average house prices in New Zealand are now around 6.5 times average household income.

When combined with the pre-existing imbalance built up prior to the GFC, the house price-to-income ratio is further from its historical average than in almost any other OECD country.”

Investor lending has been growing strongly, rising from around 28% to 36% of overall mortgage lending over the past 18 months, the article states, suggesting that the share of investor loans on bank balance sheets has increased significantly. Despite tighter LVR restrictions, the investor share of sales has increased in both Auckland and the rest of New Zealand. This suggests that many Auckland investors have been able to increase borrowing capacity by revaluing their existing properties.

Under the new restrictions, no more than 5% of bank lending to residential property investors across New Zealand would be permitted with an LVR of greater than 60%. In addition, no more than 10% of lending to owner-occupiers across New Zealand would be permitted with an LVR of greater than 80%.

These proposed new restrictions would take effect on 1 September 2016 and simplify the LVR policy by removing the current distinction between lending in Auckland and the rest of the country, North concluded.

0.75

0.75

July 16

0.70

0.70

April 16 May 16

0.65

0.60

0.65

0.60 Dec 14

Dec 15

Dec 16

Dec 17

Dec 18

Dec 19

Source: ABS, RBA, Macquarie Research, July 2016

FURTHER RATE CUTS IMMINENT, BUT AUD STILL AFLOAT The RBA looks set to cut interest rates aggressively over the next 18 months, according to a report by Business Insider. The news site has stated that James McIntyre, an analyst at Macquarie Research, believes that although the RBA will almost certainly cut rates further than the current record-low 1.75%, it is unlikely to result in any meaningful decline in the level of the Australian dollar.

McIntyre believes that additional monetary policy easing from the Bank of Japan and Bank of England, among others, along with a less aggressive rate hike schedule from the US Federal Reserve, will keep the Australian dollar well supported in the years ahead.

“With a diminished outlook for monetary policy divergence the prospects for a lower A$ have weakened,” stated McIntyre.

“We remain of the view that the RBA will need to cut rates further, dragged down by a disinflationary outlook. But with easing elsewhere, those rate cuts are unlikely to deliver significant A$ weakness. Rather, rate cuts are now likely to be needed to contain A$ upside. Although the RBA is cutting, we don’t think it will be cutting fast, or far, enough.”

The article on Business Insider states that, as a result of this, it will be hard for the Australian

dollar to break below the US70 cent level, which the currency ventured below earlier this year.

“In the absence of a shock, we think that the hit to global growth and shift towards a less restrictive monetary policy stance is likely to support the A$. A firmer currency will dampen the inflation outlook, and also provide less impetus for economy’s rebalancing,” he says.

Macquarie now expects the AUD/USD rate to bottom out at 72 cents in 2017, a far cry from the 65 cent level seen just three months ago.

Macquarie has now forecast GDP growth of 2%, down from 2.5% forecast previously, suggesting that the strength of the Australian dollar is not only hindering Australia’s economic transition but also helping to boost migration levels, further exacerbating disinflationary pressures that already exist within the domestic economy.

“We see this as weighing further on the inflation outlook, as the economy will struggle to grow fast enough to keep up with potential, absorb spare capacity, and generate inflation,” said McIntyre.

In order to help counteract disinflationary forces, McIntyre believes the RBA will have to cut rates lower, sooner and for longer than what many in financial markets currently believe, Business Insider concluded.

LENDER UPDATE 8

ANZ CRACKS DOWN ON LOAN GUARANTOR LENDING ANZ has cracked down on lending policies governing loan guarantors, limiting the leverage that family members can use to assist first home buyers, despite new data showing housing is more unaffordable than ever.

In a note sent to mortgage brokers, the major bank said it would be limiting who can act as a guarantor to family members only from 1 August, as well as limiting the number of family guarantors a borrower can use to just one.

Previously, the security guarantee was available to anyone.

Loans will also be capped at 107% of the property price, including stamp duty and transaction costs, and total lending against the guarantor’s property will be capped at 70% of the fair market value of the property.

The changes will also require the maximum amount of limited guarantee to be 50% or less of the fair market value of the property that the guarantor is providing as security. This means a guarantor who owns their home outright can only use up to half of the house’s value.

The bank said it reviewed its security guarantee policies to “help ensure more first-home buyers can access the property market sooner” but also to protect the security provider “in case something goes wrong with the first-home buyer’s finances”.

However, these changes come despite findings of the recently released Household, Income and Labour Dynamics in Australia report by the Melbourne Institute, showing that entry-level properties are more expensive than ever and home ownership is dropping.

The report revealed that the number of owneroccupier households dropped to 64.9% in 2014, from 68.8% in 2001. Home ownership among Gen Y – those aged between 25 and 34 – declined from 38.7% in 2002 to 29.2% in 2014.

In addition, the 10th percentile of homes – or the cheapest in the market – had grown 108% in value between 2001 and 2014, compared to a 47% growth for 90th percentile properties at the top of the market.

“An implication of this finding is that housing at the ‘affordable’ end of the distribution appears to have become relatively less affordable between 2001 and 2014,” the report stated.

HOMELOANS AND RESIMAC MERGE Two leading non-bank lenders – Homeloans Limited and Resimac – have announced a major merger deal in a statement released by Homeloans Limited.

The statement says the non-bank has entered into a Scheme Implementation Agreement (SIA) with Resimac under which new Homeloans shares will be issued to Resimac shareholders, and Homeloans will acquire all of the shares in Resimac.

The SIA will merge the Homeloans brand, existing wholesale funding arrangements, and third-party broker relationships with Resimac’s established securitisation capabilities, strong product development and distribution channels.

Homeloans said the merger would create one of Australia’s largest non-bank lenders, with a combined loan portfolio of over $13bn and combined new originations exceeding $3bn in the 12 months to 30 June 2016.

“Entering into binding documentation in relation to the transaction represents a significant step forward in the realisation of Homeloans’ growth strategy, and in the board’s opinion delivers the best solution for all stakeholders,” Homeloans chairman Robert Scott said.

“Homeloans and Resimac have highly complementary businesses and strategies;

Homeloans has a strong brand in the Australian mortgage industry and a national distribution network, while Resimac has well-established securitisation and product development capabilities.”

It is expected that, upon completion of the transaction, existing Resimac shareholders will hold 72.5% of the merged group and existing Homeloans shareholders will hold 27.5% of the merged group.

Warren McLeland, the current executive chairman and CEO of Resimac, said he was excited about the opportunities the union would bring.

“We are delighted to be merging with Homeloans and the transaction presents a compelling value proposition for shareholders through combining Resimac’s funding capabilities with Homeloans distribution expertise, as well as providing synergies through the integration of the businesses’ operations,” McLeland said.

McLeland is to be appointed managing director of the merged group, with Scott McWilliam, the current CEO of Homeloans, to be appointed joint deputy managing director along with Mary Ploughman, Resimac’s executive director of securitisation.

BY THE NUMBERS

$20,500,000 Housing finance for owneroccupation, May 2016

$40,102,000 Commercial finance, May 2016

Source: ABS

10

ANALYSIS

BREXIT: BOOM OR BUST? Britain has voted to leave the European Union. Now what?

Australian Broker investigates what Brexit will mean for the global and Australian economies, and how it could affect brokers ON THE AFTERNOON of Friday 24 June, Britain shocked the world by voting to leave the European Union. It was a decision that sent the global markets into turmoil, forced the resignation of a prime minister and overshadowed the contentiously close Australian federal election in the local media.

The United Kingdom voted to leave the EU by 52% to 48%, in the highest voter turnout in a UK-wide vote since the 1992 general election.

Within 10 minutes of the results being announced, the FTSE 100 plunged nearly 500 points, wiping £124bn off London’s top stock exchange. Within hours, David Cameron

announced his resignation as prime minister, and the pound tumbled to its lowest level against the dollar since 1985.

But as the dust settles – the pound sterling and FTSE have already begun to recover and Britain has announced a new prime minister – one big question remains: what will the future look like after Brexit, how will it affect the Australian economy, and, more specifically, how will it affect brokers?

A marathon Answering these questions begins by examining the steps that will unfold as the UK embarks

on its exit from the EU. The UK has held a referendum, but that is only the beginning.

As ING DIRECT head of treasury Michael Witts tells Australian Broker, it is going to be a marathon.

“Brexit could be looked at as a marathon and, to be perfectly honest, they haven’t even gone 100 metres…

“Putting it very bluntly, no one has been here before and there is no playbook to go back to and say, well, after you’ve done [the first step], you do [the second step], and so on. They will be writing the book as they go, and they will invariably hit obstacles as they go.”

11

The first obstacle will be invoking Article 50 of the Lisbon Treaty, an agreement signed by heads of state and governments of the EU member countries that was designed to make the EU “more democratic, more transparent and more efficient”. Article 50 needs to be formally triggered by the UK, which will mark a two-year countdown to Britain leaving the EU. In that time, the UK will need to hold lengthy talks to renegotiate EU agreements and build new trade links with Europe and the rest of the world.

However, as Witts points out, invoking it will not be simple. The article has only been in force since late 2009 and it hasn’t been tested yet, so no one really knows how the Brexit process will work.

“It’s not an easy task,” he tells Australian Broker. The policymakers in the EU, Witts said, will have to walk a fine line between minimising the impact and not incentivising further exits.

“If you look around Europe, there are various nationalist groups arguing that the European Union experiment has failed. This is why I say the politicians need to try and keep the lid on the impact.

“You could see this [the Brexit] give rise to more nationalistic-type debates in Europe, and that is where the terms upon the exit of Britain from the EU need to be dealt with very carefully.

“If they make it penal – ie Britain is in a recession for the next 50 years – then it means the EU is staying together by virtue of threat, rather than by desire, and there is no benefit in it. That is part of the socio-economic political framework that needs to be taken into consideration.”

Hardly an economic event With this backdrop of uncertainty in mind, it becomes increasingly difficult to determine precisely what the future will look like post-Brexit. However, this uncertainty may not be too much of a concern to the global or Australian economies.

While the Brexit vote prompted NAB to cut its UK growth forecasts from around 2% to 1%, the major bank has also noted that as the UK is only 2.4% of the world economy, it is not enough on its own to impact on global growth by much.

In a research note, NAB said ongoing global financial market volatility, or concern that other countries could exit the EU or Eurozone, would be needed to produce a significant dent in the 3% rate of global growth.

When it comes to the Australian economy, the impact seems just as insignificant. Although one in 20 Australians were born in the UK, the two economies have pursued very different regional economic strategies in the past 50 years, with the UK economy integrating into the EU and Australia integrating ever closer with its Asia-Pacific neighbours. The outcome, NAB said, is that goods trade between Australia and the UK is less than 2% of each country’s merchandise earnings.

In a worst-case scenario, Witts says Australia’s labour market could be affected if the negotiations after Article 50 is invoked go south. “… British policymakers and European policymakers will be trying to keep a lid on this and restrict it to a Northern European issue. But if they get that wrong and it turns out to be a global impact … then you could see a knock-on effect in terms of the employment market in Australia, which would have an impact on the labour market over here.” However, Witts aptly sums it up when he says, “Australia is sufficiently far enough from the UK not to have an impact.”

This ‘keep calm’ sentiment was also expressed by the

COMMERCIAL LENDING UPDATE

THE FAST ANSWERS PUTTING BROKERS FIRST Some commercial deals need a fast decision from a lender, and Chifley Securities is known for beating turnaround deadlines and exceeding broker expectations Settling a $7.5m commercial property deal just two weeks after being approached is a scenario that would impress many experienced brokers used to slower lender decisions that leave clients uncertain, and at risk.

However, it’s not an unusual turnaround time for non-bank Chifley Securities, says director Joe Morello.

“Our credit team responds really quickly to new enquiries, so brokers know they’ll get an answer saying we either like a deal and want to move forward, or that we can’t proceed. There’s no wasting time.”

Referred by a broker, the client in this case was purchasing a retail centre in Campbelltown in Sydney as an investment. With a number of shop leases either coming to an end or expired, the client’s bank reneged on the deal two days before the start of a two-week notice to complete, requiring urgent action.

“The broker came to us first because he knew he’d get a yes or no fast,” Morello says. “We got the valuation done straight away, and everything stacked up for us – we knew that in this case it was a strong borrower – so we were able to settle in two weeks, ensuring the client didn’t have to lose their deposit.”

Smart decisions Chifley Securities bases decisions primarily on the quality of the asset and the financial position and character of the borrower. That means that, unlike a bank, the lender can take a more flexible, entrepreneurial approach to deals, and because interest is capitalised, it doesn’t need to prioritise monthly loan serviceability to the same extent.

“For us, security comes down to the strength of the asset, which is tested through a valuation, and the borrower behind the deal. Monthly repayments are essentially capitalised into the loan at the outset, and our process doesn’t require clients to jump through as many hoops as a tier one bank,” Morello says.

In another deal, the representative of an investment syndicate was seeking $11m to purchase multiple adjacent sites worth $22m in Sydney’s Wolli Creek for a future development.

Although the banks were reluctant to lend because on paper the sites weren’t

Joe Morello

generating significant income, Chifley Securities was able to act fast to lock in the land, despite a more complicated corporate structure that required more due diligence.

“The representative was in a rush to settle and hadn’t been able to lock anything in, despite having made commitments to investors,” Morello says. “We were able to ensure the client saved face by settling in a little over two weeks, and we continue to receive more business from those investors.”

Fast and clear Chifley Securities has offered brokers 1% commission on settled deals since launching in 2014. However, it’s the ability to act fast with its total pool of $1.1bn in capital that is setting it apart from other lenders in the market.

In fact, the broker who referred both the Campbelltown and Wolli Creek deals is in the process of settling three more deals and entering into a white label agreement.

“The ability to get a decision – even a negative decision – allows brokers to move on, and safeguard the thing that they trade on: their reputation,” Morello says. “No one likes to get a no, but a quick no is always better for the broker.”

Morello says he expects more traditional bank deals to be referred by brokers to Chifley Securities, as these mainstream lenders continue to neglect potentially good investments and clients to maintain more conservative lending standards.

“We are seeing more deals where a client has ample net assets to cover a debt, but they are receiving overly conservative responses from mainstream lenders, and that is good for us.”

12

ANALYSIS John Hunterwood THE Manciameli, UK, THE EUROZONE ANDSolutions AUSTRALIA The UK accounts for

The Eurozone accounts for

2.4%

12%

of the world economy

of the world economy

The UK accounts for

2%

10%

3%

of Australia’s goods export

of Australia’s total service credits

of Australia’s export markets

Australia accounts for

1.4% of UK goods exports

European Union

United Kingdom

Australia

RBA, when it allayed fears of monetary policy turbulence resulting from the Brexit in the minutes of its monetary policy meeting in July.

“The United Kingdom’s vote to leave the European Union had led to considerable financial market volatility, which had since settled,” the central bank noted.

“In the absence of significant financial dislocation, the staff’s central case was that this uncertainty was expected to have only a modest adverse effect on global economic activity.”

A boost for housing Where the Brexit could have an effect in Australia, however, is on the housing market and the nation’s foreign investors – which would undoubtedly affect mortgage brokers.

According to research from Macquarie economic analyst James McIntyre, the UK’s decision to leave the EU will actually boost the population and drive up housing demand.

“A weaker growth outlook for the UK, and Europe, could see a return of Australian expats,

The rest of Europe

and a decline in the number of Australians seeking better opportunities offshore,” McIntyre said.

This is welcome news for brokers as population growth could create more demand from new buyers for the often-deemed ‘oversupply’ of new apartments coming on to the market.

REA Group chief economist Nerida Conisbee says the Australian property market would benefit from a boost to foreign investment.

“Australia continues to have a high degree of stability, economic growth and low sovereign risk. It has a reputation as being a safe haven, and this will be more the case now with what is happening in Europe,” she says.

“London is one of the main destinations for Asian property buyers. Again, this uncertainty may lead them to look at other destinations such as Australia. Australia is going to be seen as increasingly safe, particularly compared to this volatile environment.”

However, Gavin Norris, the head of Australia for Juwai.com, an international property

Source: NAB

portal for Chinese buyers, says it could go the other way. Investors may now view the UK as a “bargain”.

“Brexit helped push a 100% week-on-week increase in buyer enquiries for UK property in the week of the vote,” Norris tells Australian Broker. “Developers and estate agents have already developed the new marketing pitch.

They point to Brexit as an opportunity for offshore buyers to snap up properties at bargain prices.

“Chinese buyers are much more likely to look past the short term to market issues arising from Brexit and invest on the back of longer-term trends in property prices, exchange rates, available inventory and economic conditions.”

If the latter is true, a savvy Australian broker could still benefit by helping local investors invest in Britain’s offshore ‘bargains’.

While the full extent of what the Brexit means may be hard to determine right now, it does seem brokers can rest easy, knowing that opportunities have not diminished in its wake.

14

BUSINESS STRATEGY 20 MYTHS ABOUT GROWTH Clive Enever outlines the common myths that can hinder, rather than encourage, business growth, and how you can get around them

IN THE BUSINESS world we often talk about growth; we chart it, forecast it, budget for it, hope it happens, and then expect it. It’s considered the ‘holy grail’ of business success. But growing a business can be a double-edged sword, and there are a host of myths about how it occurs. These are the top 20 and how you can avoid the pitfalls that come when you treat them as fact:

1

‘Bigger is better’ Size doesn’t necessarily equate to success.

There are plenty of proprietors who have invested heavily in making their businesses bigger, only to find that at the end of the day the financial return doesn’t meet their expectations. The solution is to know exactly where your growth is occurring or is likely to, and invest strategically when required.

2

‘Growth equals cash’ Yes, growth can equal more revenue.

But the likelihood is that it will also require a financial response, whether that’s larger premises, higher staffing levels or an investment in better tracking technology. Planning is the key, to know what to expect, what will be required, and to budget for the growth leap period.

3

‘It will just happen’ Growth can be organic in nature, but sometimes it needs a concerted effort. This is where intimate knowledge of your market, emerging trends and growing areas pays off. That way, instead of just responding to growth you make a calculated estimate of what will happen and put yourself at the forefront of the game.

4

‘I can do it all’ No man can be the master of all things.

If you’re looking to grow your business, you may require additional staff or people to fill specific roles to support you in your larger endeavour.

You may also require outside expertise along the way to give you insight and assistance.

5

‘Plan? Who needs a plan?’

Much of business comes down to good planning. A business plan that includes your forecast growth and what will be required to achieve it is your road map for this.

6

‘Same, but bigger’ If your business is expanding, it’s natural

things are going to change. Larger enterprises call for more stringent systems and procedures to ensure the service or product you provide retains its integrity.

7

‘Grow or die’ This old nugget of wisdom fails to take into account that, if not handled carefully, growth can outstrip the managerial and production capacity of a business, meaning the goodwill you have spent years establishing could be swiftly and irreversibly damaged. Any growth should be carefully considered with the correct framework to back it up.

8

‘Growth equals more jobs’ Growth can equal more jobs; if it does, it can also mean higher staff costs. But sometimes wellhandled growth can be about better utilising and training your staff, and implementing the right systems, procedures and lines of communication to take the business to the next level.

9

‘Better staff leads to growth’ Great staff are the backbone of almost every company, but that doesn’t mean headhunting for top talent to get the job done. Ensure the staff you have are trained to do their jobs, and bring in other people when necessary. takes money’ 10 ‘Growth Sometimes growth requires funding, but not always. A steady approach to growth can involve using a portion of the profits you have to increase product lines or invest in better marketing. business will outgrow me’ 11 ‘My Whether they know it or not, business owners often fear a growth spurt, believing their businesses will grow to be beyond them.

This is where careful planning comes into play and implementing the right staff in the right positions to ensure you work on your business and not just in it.

12

‘Better site, bigger business’ A high-profile office with the latest fit-out and decor doesn’t guarantee success. Again this should be evaluated and planned for in the knowledge that a change of premises can alter your customer base.

and steady’ 13 ‘Slow While slow and steady is said to win the race, sometimes business growth takes a leap of faith where you identify a potential area of growth, research its likely success and take the plunge. is bad’ 14 ‘Borrowing Yes, borrowing can be a risk, but if carefully considered with the research to back you up, borrowing can provide you with the capital you need to take the next step. prices equal more profits’ 15 ‘High You might have a premium product and customer service that is second to none, but high prices can limit your customer base, restricting your market and income. impervious to competition’ 16 ‘I’m So your business is growing, and your service or product is unique. That’s not the time to rest on your laurels and underestimate the competition. Expanding your range, changing your premises or altering your staff levels can leave you vulnerable to competition.

15

Clive Enever Clive Enever is The Business Mentor and founder of The Coaching Circle.

TECHNOLOGY UPDATE

VIRGIN MONEY LAUNCH WITH APPLYONLINE

Adrian Cunningham

harder is the only path’ 17 ‘Working Hard work absolutely gets you a long way in business, but ultimately it’s about working smarter, not necessarily harder, to encourage growth. the way we have always done it’ 18 ‘That’s Always having ‘done it this way’ has brought you to here, but is that what is needed to carry you into the future?

Customer needs change and the old way of doing things can have you quickly falling behind. Identifying and meeting changing customer needs encourages customer loyalty. it takes is advertising’ 19 ‘All Growth isn’t always about throwing money at something, and that certainly applies to advertising. It pays to make sure your product is honed well, with your staff trained adequately to deliver it, and then tailor your marketing to your potential customers. not ready’ 20 ‘I’m Change can be challenging, especially if there’s an element of risk involved. If you feel you’re not ready but growth is inevitable or a requirement, then get yourself on the front foot. Tidy up your business plan, chart your course, and implement the right policies and procedures to get you where you need to be.

s

Consistent with the famous brand identification of the multinational, multifaceted Virgin Group, Virgin Money Australia kicked off its recent entry into the home loan market with a focus on building “meaningful relationships” with its customers and industry partners.

Customer research conducted by Virgin Money revealed that heading the customer wish list is for lenders to stop viewing them as “just another number”.

The Virgin Money survey dug deeper and found a need to “feel valued” is a key factor determining a borrower’s choice of lender.

Accordingly, explained Virgin Money head of distribution Adrian Cunningham, a focus on establishing personal relationships and satisfying a borrower’s need to feel recognised and rewarded for the value they bring has been pivotal in shaping the company’s vision, strategies and mortgage product.

Teaming up with the broker channel was a given because it provides customers with the opportunity to engage in face-to-face interactions.

It also replicates the model utilised by Virgin Money in the UK, which does close to 90% of its lending through the third-party channel.

“We don’t have branches, so the broker channel makes sense. Our research told us customers would value the opportunity to apply for a Virgin Money home loan face-to-face. There are good synergies between the service provided by mortgage brokers and Virgin Money’s commitment to simplifying money and delivering a great customer experience,” said Cunningham.

Virgin founder Sir Richard Branson started Virgin Money in the UK 30 years ago. Virgin Money Australia launched its new mortgage product in May. Simultaneously, NextGen.Net’s electronic lodgement solution ApplyOnline went live, a clear indication that empowering brokers at the point of sale, driving efficiencies and giving brokers maximum control is high on Virgin Money’s agenda.

“For us it’s always about going to where the strength is and making it as easy as possible. So NextGen.Net was it,” said Cunningham.

“One of the first things we looked at in terms of process and an operating model was how we receive loans. Brokers

Greg Phillips

are familiar with the ApplyOnline platform and our principle is “keep things beautifully simple” for everyone.

So it made sense to use the platform that brokers are most familiar with.”

NextGen.Net sales executive Greg Phillips said, “From day one their focus has corresponded with ours in terms of providing best-in-class solutions for the broker channel to drive efficiencies at the point of sale and reduce operational costs in the residential home loans market.

“From NextGen.Net’s perspective, it’s great to partner with Virgin Money because it’s a brand that people are familiar with and respect, and like NextGen.Net it has a reputation for being innovative.

“Up front, Adrian made it known that Virgin Money was looking for a technology partner versus just a technology solution.”

For Cunningham this translated as “customisation”.

“We’re actively working with NextGen.Net to learn how to improve the broker experience so they capture the right information and can get relevant information up front and minimise the amount of time they have to go back to borrowers,” Cunningham said.

“It’s up to the lender how far they turn that dial.

“We’ve sought NextGen.Net’s guidance on what works best for brokers along the entire spectrum.

“NextGen.Net has a lot of great little tools. Almost as soon as we partnered with them for our base platform we started looking at their Supporting Documents tool. We’ve now signed up to introduce that, which will deliver further efficiencies for brokers and for us.

“We’re also looking at their online servicing calculator, which is a format that brokers are familiar with and takes us back to our tenet to keep things simple and clean.”

It’s been barely two months since ApplyOnline went live, but Cunningham says feedback from the back office and brokers is very positive.

“We have a couple of quirky little fields [on the loan application] that may be different to other lenders and could have caused problems, but our back office is giving us the thumbs up. So it’s going remarkably well,” he said.

16

OPINION

CONFUSING TIMES John Kolenda shares his two cents on the current state of the mortgage market, and why brokers are so in demand THE PAST few years have proven to be some of the most confusing and challenging times for the home finance market, despite the comfort of record-low official interest rates for borrowers.

While the RBA has lowered its cash rate to an all-time low of 1.75% and could make even more cuts, the overall lending landscape has become a minefield for mortgage holders trying to navigate changes in lenders’ appetites, fluctuating policies and new regulatory measures. This volatility has made mortgage brokers more essential now than ever before.

There is so much going on in the market, and borrowers need an experienced mortgage broker to help them navigate all the obstacles and potentially nasty surprises.

Beware out-of-cycle rate rises One looming challenge we are expecting is another round of out-of-cycle interest rate increases by the banks in the second half of this year, even though the RBA may further reduce

...the overall lending landscape has become a minefield for mortgage holders ... This volatility has made mortgage brokers more essential now than ever before

its official rate.

With the federal election done and dusted and the Coalition narrowly retaining power, the door is now open for the major banks to take their own course and increase interest rates. They have been eagerly awaiting the chance to lift their home loan interest rates independently due to the margin compression from fierce competition, the cost of funding and compliance issues.

Banks have been eyeing repricing opportunities for some time, but they have had to hold back as a result of the eight-week election campaign and pressure from both sides of politics.

We saw variable rates last year increase by up to 29 basis points and investor loans by up to 49 basis points. I believe there are likely to be similar

increases across the board for owner-occupier and investor loans in the months ahead, and while we are unlikely to see interest rates go back to pre-GFC levels any time soon, the confusing lending landscape means many thousands of mortgage holders may be paying more than they should be for their home loans, without even realising it.

Complacency is expensive Unfortunately, although the low interest rate environment is good news for mortgagors who are

17

John Kolenda John Kolenda is the co-founder and managing director of the Finsure Group

able to afford to buy more brick and mortar and leverage the low interest to get ahead on their payments, it has also created a great deal of complacency among some mortgage holders.

They could actually be paying a lot more than they ought to be. Mortgage repayments represent one of the biggest monthly expenses for the average Australian family, and the interest rate differentials across lenders are as wide as I have seen in the past 20 years – as much as 1.75%.

It’s a crazy situation. And yet so many people are reluctant to have a look at their home loans and shop around for better deals. This is why brokers have never been as crucial to helping consumers as they are right now. It really is a minefield today and borrowers cannot access a wide variety of solutions through a single lender. Mortgage brokers are extremely valuable because they are the only ones who have access to a range of lenders.

It’s a mistake for borrowers to just stick with the bank they have been with for years purely because it’s ‘easy’, as their rates might in fact be costing them thousands of dollars.

Customers can only get the best view of products by doing extensive research or talking to an experienced mortgage broker, and our industry needs to be hammering this point home to the public.

The scenario we are likely to be facing in

the months ahead – with official interest rates staying low and banks adjusting some of their rates upward – means consumers will need to be on top of how their home loans are performing.

Although mortgage holders need not fear that the cash rate will return to what was once considered the normal level of 5.0% for at least the next decade, they can save money by ensuring they are getting the best deal. And the broker can close that deal.

There’s no quick fix As for the Reserve Bank, it faces many challenges both globally and domestically.

The monetary policy game has changed in recent years and the RBA has found that cutting its cash rate is not necessarily an instant remedy for economic stimulus, and rather has more influence on currency fluctuations.

Conversely, an increase in official rates by the RBA at any time in the future could have a disastrous impact on consumer confidence and the economy. Consumers are now very rate-sensitive, and when official rates rise they are likely to stop spending and revert to saving.

Again, this is a dynamic that makes the role of a trusted mortgage broker a necessity to assist existing mortgage holders as well as those that are new to the home loan market.

The value of the mortgage broker has never been higher!

18

COVER STORY WRITE LOANS, GET SHARES After selling Choice Aggregation Services in 2007, Greg Pennells felt he owed a debt to the aggregator’s 1,300 mortgage brokers that had made it all possible. Now, he’s making it up to them with his latest industry venture that offers a whole lot more than competitive commissions

TWENTY-FIVE YEARS ago, Perth-based Greg Pennells became one of the country’s first to join the new movement that was mortgage broking.

It was 1991, and following a career working as a bank manager at West Australian bank Town & Country, Pennells answered an advertisement in the paper for a finance broker. Six years later, he started Choice Home Loans with his colleague, Ross Begley, which they sold in 2007 for $163m.

“We started Choice Home Loans because we felt we could make a difference,” Pennells says. “Nobody

… was I actually wanted to reward the mortgage brokers themselves.”

This is where Purple Circle comes in.

A new era While Purple Circle might be Pennells’ brainchild and the reason for his palpable enthusiasm, brokers have reason to be just as excited by this new player in the market.

Write loans, get shares – this is the premise of Purple Circle Financial Services. For every loan a

“By moving across from where they are to us, they’re actually not going to be disadvantaged financially, but what they will do is they will actually gain that extra ownership of Purple Circle. So it’s a very, very seamless move. They can continue doing what they do with their own business, but now … every loan they write qualifies them for shares” was actually listening to brokers, and supporting them, and because we were brokers ourselves we sort of knew what we wanted, but we couldn’t get it from anyone. So we thought we’d just supply it ourselves.”

Although it might have looked as though Pennells had left the finance industry for good following the sale of Choice, going on to buy a farm in rural WA, this couldn’t be further from the truth.

On 1 August Pennells officially opened the doors to Purple Circle Financial Services, a sub-aggregator under Choice – a decidedly fitting choice.

“I couldn’t help myself, I guess. It’s just that entrepreneurial flare that I’ve always had … And one of the things I wanted to do when we sold

Purple Circle broker writes, they can earn shares in the company itself – an idea that will appeal to all brokers, but particularly those tuned in to business.

Purple Circle has already opened up to a small number of brokers, specifically those working under Perth financial planning company Wealth Today, of which Pennells is the managing director.

Wealth Today’s mortgage brokers have welcomed and accepted Purple Circle with arms wide open, says Pennells.

“Yesterday we launched it to our financial planners who are mortgage brokers, and we’ve had nearly 100% take-up rate. We were in Adelaide last week and we had 120% [take-up] because one chap actually referred us to two others. So the actual

take-up has been unbelievable,” says Pennells.

“Just about everyone we speak to wants to join because it makes so much sense.”

Now that the sub-aggregator has launched, Pennells is on a mission to attract new brokers, and to this end Purple Circle is offering competitive commission splits to brokers who are willing to jump ship from their current aggregator. Brokers having the option of deciding on their split of commission versus shares is one of Purple Circle’s biggest selling points. The lower the commission, the more shares brokers can earn, and vice versa.

“Wherever possible, what we’re trying to do is try to match the commissions they’re on at their existing aggregators,” Pennells tells Australian Broker. “By moving across from where they are to us, they’re actually not going to be disadvantaged financially, but what they will do is they will actually gain that extra ownership of Purple Circle. So it’s a very, very seamless move. They can continue doing what they do with their own business, but now … every loan they write qualifies them for shares.”

In what might surprise some, and looks like an encouraging sign for Purple Circle, Pennells says most brokers so far are actually opting to earn more shares and less commission. Pennells thinks these brokers have their business hat on and, clearly, have high hopes for the business.

For the soldiers Pennells tells Australian Broker that one of the biggest impetuses for starting Purple Circle Financial Services was giving back to the mortgage brokers – the “soldiers”, as he calls them – that he felt were not rewarded in the sale of Choice Aggregation Services in 2007.

“We didn’t get a chance to actually include them in the sale, and they’re actually the soldiers that made it possible. They’re actually the ones who were the engine room behind the value … behind any aggregation company,” Pennells says.

“I’ve got the ability to get scale and to build the company into mass, but this time I want to do it for the mortgage brokers. I really felt when we finished that I owed them a debt.”

To clear this so-called debt, Pennells has structured the company so that a steering committee that includes foundation brokers is at the helm of all decision-making.

“One of the exciting things for mortgage brokers this time is … we’re actually going to let the brokers decide what direction they want to take the company… The steering committee is actually going to be responsible for the innovation in the company because I want that to come from the mortgage brokers themselves. I don’t want to be a dictator who sort of says, ‘This is what we’re doing’.

This is actually for them.”

In what is another vote of confidence for Purple Circle, Pennells tells Australian Broker that a number of brokers have also already asked him if they can forgo their own brand to trade under the Purple Circle brand. “… some of them have turned around and said they don’t want us just to be an aggregator, they love the logo and the brand, they actually want to trade under the brand... wherever we can facilitate it, [the answer] will be yes. So we’re actually going to be driven by our brokers themselves.”

19

The perfect model As a sub-aggregator, Purple Circle has the best of both worlds, according to Pennells. The choice to go with Choice was an easy one, and not just because Pennells is still emotionally ‘embedded’ in the aggregator, with many of the brokers he signed up in his tenure now enjoying senior roles there. In the years that have passed since Pennells sold the aggregator, the company has maintained its positive culture and reputation in the industry, and because Purple Circle is all about giving back to brokers, it was a no-brainer, says Pennells.

“They’ve kept that culture of looking after brokers. … It’s actually just such a wonderful culture of support … the support they’re giving us is amazing, in helping us to bring people on board, and to make sure all their accreditations

are moved across. In every state they’ve been supporting us,” he says.

Purple Circle brokers will have access to everything on Choice’s panel and the usual access to BDMs, support in every state, their software platform, PD days, training and development.

“Purple Circle focuses on the brokers, and all the tools of the trade and everything else is supplied

by Choice.

“We don’t have to spend time in that domain; we can just work with our brokers, and that’s what we want to do – be very hands-on.”

The purple circle It’s not hard to see that Pennells’ vision for Purple Circle, and the fact that it’s one in which brokers play a starring role, is refreshing to say the least.

And Pennells’ five-year plan for his business is equally positive.

“To grow as quickly as we can, as big as we can, and to have happy brokers,” Pennells says. “We had no plan when we set up Choice. Ten years later we sold it and had 1,300 members, so I’m going into this with no plan again, an open book.

“Wherever we can do it, let’s do it, let’s work together and make it happen.”

And for those that are puzzled by the business’s name, it all falls into place when you discover its meaning – “an invitation-only meeting of likeminded people”, says Pennells. “[It] pretty much explains what we’re trying to achieve here.”

And if his last mortgage venture is anything to go by, then brokers are in good hands.

20

INDUSTRY SPOTLIGHT COMMERCIAL SENSE

Two of Choice Aggregation’s best commercial brokers explain how residential brokers can approach a move into commercial, and why it all begins by asking for help

THE WORD ‘diversification’ is thrown around an awful lot in the mortgage industry these days, most commonly when referring to the careers of residential brokers who are umming and ahhing about expanding their service portfolios. For Kevin Wheatley of Bayside Commercial Mortgages in Sydney, however, his journey was always going to be in the commercial broking arena, thanks to his background as a logistician. Residential, in fact, is his Achilles heel.

“When I came into broking, I was always going to go into commercial. My weakest point was probably residential,” he says.

It’s no surprise, then, that in 2014 Wheatley was named by Choice Aggregation Services as Commercial Professional of the Year, and was ranked seventh in Mortgage Professionals Australia’s Top 10 Commercial Brokers list.

Bayside Commercial Mortgages has a residential division as well as facilities for all commercial products, including construction, hotels, franchises, business restructures, and trade facilities. Wheatley has had remarkable success not only in Australia but also in New Zealand and Asia. He worked on raising funding for Disney World in Vietnam, and still does logistical consulting for the rebuild of Christchurch.

His strong business background, predominantly in managing companies and keeping them structured and profitable, meant it was only natural that Wheatley would play to these strengths as a finance broker. And this is one of the most important pieces of advice he would offer a residential broker wanting to add another feather to their cap. “… what we really need to explain to brokers that would like to enter into the commercial playground is, what facet of commercial funding have you got experience in? … So firstly, when you’re starting out, work with your strength,” he says, which is exactly what Evette Anderson, of Asset Finance Solutions in Melbourne, did.

Anderson is a specialist in investment lending, across both residential and commercial transactions, and is consistently named a Platinum Broker with aggregator Choice (High Achiever).

“I decided as a business to focus just on one niche area rather than trying to do everything,”

THE REWARDS OF COMMERCIAL Being a successful broker is often about giving more than just mortgage advice – it’s about listening to clients and going through the bigger picture of their financial situation.

Understanding the full scope of your clients’ needs makes it easy to identify opportunities beyond home loans, allowing you to deliver solutions through commercial finance or refer them directly to a lender or another broker with confidence.

One of the biggest advantages for brokers of providing clients with a broader range of financial solutions is that you secure yourself as a trusted partner who consistently delivers on all their needs.

Additionally, you’ll position yourself within a high-demand segment of the professional market, with the benefits of: • Greater rewards, higher-value transactions – On average, commercial borrowers transact approximately four times per year, often involving larger amounts of money than residential deals • An increased network – Commercial borrowers often require their finance broker to interact with other business partners, including accountants and lawyers, providing opportunities to build referral relationships

• A higher-value offering – Most business owners prefer to spend time on their business, rather than searching for finance, and your ability to identify the best solution within a diverse and complex field of lenders in the commercial market positions you as a highly valued business partner • Delivering long-term solutions – Large commercial loans are more solution-driven than price-driven, resulting in less pressure on margins.

– Stephen Moore, CEO, Choice Aggregation Services

21

she says. “And then from that, become a specialist in understanding basically how different lenders work with different types of investors, how to maximise borrowing capacity for all investors across both residential and commercial, having an understanding of property development and sales.”

The stigma of complexity For residential brokers, there is a stigma of complexity that often lingers around the proposition of commercial broking, which can stop many brokers in their tracks. Anderson, however, believes this is a misperception.

“From my point of view, I don’t think it’s complex; I think it’s about having the right people around you, and knowing where to go when you’re given a deal that maybe you don’t understand. To have the right business bankers or commercial bankers that you can just sort of pick up the phone and ask the questions. And they’ll educate you as quick as you need to be [educated] because, at the end of the day, they want the deal as much as you do,” she says.

Wheatley agrees that forging strong relationships right from the get-go is crucial to forging a career as a commercial broker. This starts with speaking to relationship managers for assistance as soon as a challenging submission comes up.

“If you can’t get in contact with the relationship managers, go back to your aggregator and ask the question: who on the aggregation panel is head of commercial for a particular institution – are we accredited with them? Then you go back to the person they’ll nominate that represents the bank, and try to arrange a one-on-one meeting with those bank representatives, because that’s going to be the greatest ally anyone breaking into the market can ever have,” says Wheatley.

But what about residential brokers who are lacking confidence or utterly daunted by the idea of commercial altogether? This is where mentorship and aligning yourself with commercial figures in the industry becomes paramount, according to both Wheatley and Anderson.

“Spend time with companies like ourselves,” Wheatley says. “There’s a number of commercial brokerages out there and very successful ones … introduce yourself and see if you can become a part of their mentoring program. We’ve got a couple here who come in one day a week for four hours… Those new to the market work with experienced commercial brokers. And we’re happy to do that.”

Anderson agrees that working with a commercial broker will not only give newto-commercial brokers invaluable first-hand knowledge, but it will also arm them with greater insight into the lenders themselves. “… it does help if you’ve got other brokers, because they can tell you who’s got appetite for what type of commercial. That’s probably the main key of commercial and property development – understanding where the lenders are at, what sort of parameters they’re at, because they’re constantly changing policies depending on the market,” she says.

A dangerous consequence of not seeking out expert advice, she says, is promising your client the

world, and not being able to follow through and provide a solution.

“I find a lot of new clients we pick up, if it is a commercial deal, they’ve spoken to a broker, [and] rather than [the broker] saying, ‘I’ll put you in touch with someone’ or ‘I’ll have someone contact you’ and that’s not their area, they’ll say, ‘Yeah, yeah, we can do it’, and they get very, very close to settlement and then all of a sudden the broker doesn’t know what to do with it.”

Reputation, Anderson suggests, is everything in the business of broking, whether it’s residential

Evette Anderson

or commercial, and a good reputation begins with transparency.

“I believe it’s a confidence [thing] to be able to do commercial, because … if somebody brings something to me, even if I don’t fully understand it at the beginning, I’ll sit there, take all the information on board, and then you go and find your mentor, whoever that may be, to help go through it all and sit down and research it and come up with your answer,” she says. “… if you’re not used to dealing with complex structures and complex purchases, it is about having the right mentor.”

Both Anderson and Wheatley also suggest that attending aggregator Choice’s commercial workshops and PD days is an easy way to get your foot in the door.

“I know a couple times a year [Choice] supply a commercial PD day, and they have all the commercial lenders just there, so that’s a great place for anyone looking to start out, because at least then you can get your contacts … and start building your relationships.”

Menu of services Anderson believes that every residential broker has an obligation to their clients to start offering commercial services, however small.

“I think from a broker’s point of view if you don’t

learn commercial, even if it’s just basic SMSF for your existing clients wishing to buy a commercial factory, or a commercial shop to add to their residential portfolio, you’re not doing right by your clients,” she says. “You need to be able to educate your clients.”

For the residential brokers who would rather stick to their specialty, however, entering into commission splits with an experienced commercial professional is another tactic that Wheatley says is a popular model and tends to work well for both parties. The broker becomes an

Kevin Wheatley

introducer, and the commercial broker will contact the borrower on the residential broker’s behalf, as the ‘commercial arm’ of the residential brokerage.

“We actually spend more time promoting their business rather than ours,” says Wheatley. “But what it does for the borrower is instils confidence in the borrower that they’re actually working with commercial professionals.”

Anderson agrees that if handling commercial transactions is not the right path for them, residential brokers must reach out to others who can handle that side of their business. “… if you’re not willing to put yourself out there and do the hard yards to get [the commercial loan] then you really need to align yourself with a broker that does do that,” she says.

And yet there’s no denying the benefits of brokers branching into commercial, with the most obvious being ‘diversified knowledge’, according to Wheatley.

“They’re diversifying their knowledge, and once you diversify your knowledge you’re opening up opportunities … people are going to be processing their own loans online soon, and that’s going to be a real threat to the industry. So if you don’t have other value that you can offer to intending borrowers, you’re just going to be another residential broker that’s going to fall down. You’re going to be left behind.”

22

MARKET WRAP MARKET TALK

INVESTORS CLOSE-UP With the Australian Government now decided and changes to negative gearing ruled out, property investors can breathe a sigh of relief. But who exactly is the Australian investor? CoreLogic’s latest report profiles this market segment CORELOGIC recently released its Profile of the

THE INVESTOR IN A NUTSHELL

Approximate value of all investor-owned dwellings

There are approximately

2.6 million investor-owned dwellings

$1.37

across Australia

TRN

2.03 million individuals or 15.7% of all taxpayers invest in residential housing Current taxation statistics show there are Investor-owned dwellings comprise 26.9% of all housing stock by number

23.8% based on the value of all housing stock

2.03

MILLION individual investors

Investors’ unit stock

60%

Victoria and South Australia

On average, each investor owns

1.28 investment properties

50% New South Wales and Queensland Source: CoreLogic

Australian Residential Property Investor report, comprising of an extensive analysis of the local investment market.

With housing – the single biggest asset class in Australia – worth an estimated $6.5trn, and investors owning almost one third of this, CoreLogic’s Asia-Pacific research director Tim Lawless says having an understanding of the investor segment is important for understanding the nation’s property market and economy.

“Given investors own almost one third of Australia’s housing and comprise almost half of the demand for new mortgage commitments, for politicians, investors and the public at large, having an understanding of the typical profile of the Australian property investor is important, particularly with regard to where investors are most active and what contribution they are making to the overall national economy.”

The CoreLogic report indicates that, nationally, investors generally favour lower-value housing, with 53.4% of investment-owned dwellings having a current estimated market value of less than $500,000. This is greater than the 46.9% of owner-occupied dwellings that fit into this bracket.

Additionally, in each capital city the large majority of investor-owned dwellings have an estimated market value that is lower than the capital city median value.

Across dwelling types, the highest proportion of investors is in the apartment sector, with almost half (48%) of Australia’s unit stock owned by investors as opposed to the mere 17% investment ownership of detached housing.

Geographically, the report shows that the investment concentration tends to be highest in the capital cities, particularly Melbourne; however, large concentrations of investor-owned dwellings can also be found in mining regions and coastal markets associated with tourism and lifestyle factors.

Growth in rental income has slowed down since mid-2013, meaning lower yields for investors. However, lower mortgage rates have offset the potential pressure of this downward trajectory, and tenants have benefited from increased rental affordability.

23

“Currently, it’s lower mortgage rates that are offsetting the burden of low rental yields; however, the spread between the average standard variable mortgage rate and gross rental yields has been pushing slightly higher since September last year.”

According to the ATO data included in CoreLogic’s report, residential investors claimed $3.719bn in losses associated with their rental properties over the 2013/14 financial year.

Importantly, net rental losses have reduced by 34.2% from 2012/13 and are down 59.0% since peaking in 2007/08.

Lawless said the ability of investors to claim a rental loss has reduced due to record-low interest rates, but as soon as rates go up, investors will be facing a new scenario.

“When mortgage rates do eventually start to rise, investors will be facing a scenario of higher holding costs. This is likely to result in a renewed focus on recovering these higher costs via rental increases. However, if residential property investors are unable to implement higher rents, we can expect

to see an increase in net rental losses,” said Lawless.

Drawing on data from the ABS, the report also shows that while the large majority of investment dollars flow into established housing, investors comprise approximately 40% of market demand across the new housing stock sector (including construction of dwellings and purchase of new properties).

Over the long term, investors have accounted for 23.9% of the value of all housing finance commitments for new housing stock, with investment activity in this sector accelerating over the past four years.

“Given the significance of this asset class to Australians’ wealth, and to continued economic prosperity and financial system stability, it is important that policymakers and commentators have access to the most comprehensive and independent statistics and analysis to inform the current housing debate, and ensure any potential changes are considered in the context of this broader context,” concluded Lawless.

GOVERNMENT KICKBACKS

$45.20bn

$3.719bn Cost to the federal government of residential property investors foregoing income tax via negative gearing

Contributions from investors to state and local government in taxes over the 2014/15 financial year

$

$51.2bn Value benefiting the federal government from capital gains tax associated with resale profits made by investors over the 2015 calendar year Source: CoreLogic

24

MARKET WRAP FINANCIAL SERVICES

BANK BRANCHES FACE COMMISSION REVIEW The ABA’s member banks have requested that the association commission an independent review of product sales commissions and product-based payments WHILE the ASIC-led review of mortgage broker remuneration is already underway, an independent review of commissions and payments made to bank staff will soon begin, after the Australian Bankers’ Association (ABA’s) member banks requested that it commission an independent review of product sales commissions and product-based payments.

The former Australian public service commissioner, Stephen Sedgwick AO, has been appointed to conduct the review.

“Banks recognise that how they pay staff is an important factor in determining community trust and confidence in banks,” ABA CEO Steven Münchenberg said.

“We want to ensure that across the banking industry when people are rewarded for selling products and services they are putting customers’ interests first.”

The independent review will include an investigation of remuneration for selling and providing advice on all products, including mortgages, personal loans, small business loans, transaction accounts, general insurance products, consumer credit insurance and credit cards.

Its scope will cover customer-facing employees, contractors and third parties, as well as non-customer-facing roles such as the managers and supervisors of those staff.

Payments made by banks to non-bank sales channels or intermediaries – such as mortgage brokers – will also be considered as part of the review. However, this will be in addition to corporate watchdog ASIC’s comprehensive review of remuneration in the mortgage broking sector.

Therefore the ABA review will focus largely on the

banks and their staff, and will run in parallel to the ASIC review. Any findings and options from the ABA review that relate to mortgage broking and align with the ASIC review will not be concluded until completion of the ASIC review.

Münchenberg said the review would build on the Future of Financial Advice reforms, which brought about significant changes to remuneration structures across the financial services industry.

Sedgwick will be supported by a competition and legal expert, Gina Cass-Gottlieb from Gilbert + Tobin Lawyers, and a remuneration expert, David Heazlett from Mercer.

There will also be a stakeholder advisory panel, which will include Gerard Brody, chief executive of the Consumer Action Law Centre; Geoff Derrick, national assistant secretary at the Finance Sector Union; Sarah Saunders, chief advocate at National Seniors; and Deen Sanders, chief executive of the Professional Standards Authority.

As a part of the review, Sedgwick will consult with banks, consumer and small business organisations, the Finance Sector Union, and employees of banks, regulators and other stakeholders.

He will also be asked to provide observations and recommendations from the review to assist banks in ensuring they have overarching principles on remuneration and incentives that support good customer outcomes and sound banking practices.

This ABA-commissioned review is part of a package of initiatives announced by the industry in April this year to lift standards and be more accountable. A final report will be published no later than 31 March 2017; however, the reviewer will aim to complete the review by the end of 2016.

REMUNERATION STRUCTURES Product sales commissions and product-based payments will be reviewed where they: • include fixed or at-risk payments that are a direct or formulaic payment (either $ or %) for the sale of one product or multiple products or the gross revenue generated from those products, and may include performance bonus payments and other sales incentives • are monetary or non-monetary and paid or given to staff or others (non-bank channels or intermediaries) by a bank • could result in poor customer outcomes The types of retail banking products within the scope of the review include: • basic banking products (eg transaction accounts, term deposits, travellers’ cheques) • non-cash-payment products (eg travel money cards) • general insurance products (except for personal sickness and accident) • first home saver accounts • consumer credit insurance • consumer credit products (including mortgages, personal loans and credit cards) • small business lending

THE CHOICE IS YOURS WITH

MAGAZINE The only independent magazine dedicated to mortgage industry news, opinion and analysis

WEBSITE Breaking news, in-depth profiles, features, online forum and Australian Broker TV

ENEWSLETTER Daily news service delivered straight to your inbox every morning

FOR MORE INFORMATION, PLEASE EMAIL EDITOR@BROKERNEWS.COM.AU

26

CONSUMER INSIGHTS DEBT AGREEMENTS REACH ALL-TIME HIGH According to recent findings, debt agreements reached record highs in NSW, Queensland and WA in June quarter 2016

NEW DATA from the Australian Financial Security Authority has shown that in June quarter 2016 a record-high number of debt agreements were made. The figure, 3,329, was up 24.3% in the June quarter, with record-high debt agreements occurring in NSW, Queensland and WA. The previous record was in September quarter 2015, with 3,081 debt agreements.

The findings also revealed a 13.7% increase in the total number of personal insolvencies in June quarter 2016 compared to the previous year, the largest rise since March quarter 2009. According to Digital Finance Analytics, there was also a 7% increase in bankruptcies.

In the June quarter, 17.5% of debtors entered a business-related personal insolvency, higher than the 16.3% for the same quarter last year.

‘Economic conditions’ was found to be the most common business-related cause of insolvency, while unemployment or loss of income and excessive use of credit were the most common non-business-related causes.

However, despite the sky-high debt and surge in personal insolvencies, the latest edition of the Digital Finance Analytics Household Finance Confidence Index shows that overall confidence has improved to a score of 95.21. However, this is still below the long-term neutral score of 100 which the nation fell below in 2014.

The Index’s findings were derived from a survey of 26,000 households, and measured how households were feeling about their financial health. The survey took into account participants’ job security, income, and their views on the cost of living, and evaluated whether they had increased their loans and other outstanding debts, including credit cards, and whether participants were saving more than last year. The Index also took into account the households’ overall change in net worth (net assets minus outstanding debts) over the previous 12 months.

Martin North of Digital Finance Analytics puts the increased household financial confidence down to increased confidence in the property segment, thanks to ever-lower mortgage interest rates and positive news on home prices in the major states of NSW and Victoria. “Property inactive households were a little more positive too, thanks to rental increases being contained and food costs down a little. Property investors are also positive, thanks to lower interest rates and better access to mortgage funds at good prices. Intention to purchase property has improved, thanks to continued capital gains,

CONFIDENCE ON THE UP

MISSING OUT ON THE BIG BUCKS

Household Finance Confidence Index

Over 40% of surveyed households’ income has fallen in the past 12 months 70%

110

60%

105

50%

100 95

lower mortgage funding costs and net perceived better returns than stocks or deposits. Future price growth expectations also rose,” North stated in an article online.

However, the article also indicated that financial confidence varies dramatically from state to state.

While NSW and Victoria have greatly improved, WA languishes, thanks to flatter home prices and rising unemployment, and the variations across the state regions are even more extreme. ”Income, in real terms, continues to fall for many. Those reliant on interest from bank deposits were hardest hit, with average rates for many falling. Further drops in returns on deposits will force many to consider alternatives, including property,” North concluded.

95.21

40% 30%

90

20%

85

10%

80

0% Apr 2013 Aug 2013 Dec 2013 Apr 2014 Aug 2014 Dec 2014 Apr 2015 Aug 2015 Dec 2015 Apr 2015 Source: Digital Finance Analytics

Mar 2015 Risen

May 2015

July 2015 Fallen

Sept 2015

Nov 2015

Stayed the same

Jan 2016

Mar 2016

May 2016

Source: Digital Finance Analytics

27

TECH FOCUS DIGITAL DOMINATION

MORTGAGORS DISSATISFIED WITH APPLICATION SPEED

Mortgage holders are more likely to be dissatisfied with the

7%

ASIC’s move to allow fintech start-ups to operate in a ‘regulatory sandbox’ could be the first step towards Australia becoming the next big hub for fintech

speed of their application ACCORDING TO Tyro CEO Jost Stollmann, Australia could soon be Asia’s pre-eminent fintech hub with a new generation of entrepreneurs and investors underpinning a brave new world where everything is quicker, easier and more productive.

Australian Banking & Finance (AB+F) has reported that Stollmann’s vision for the nation’s future begins with Australia eliminating the regulatory red tape he believes has previously held the nation’s visionary start-up companies back, allowing them to lead the region’s fintech revolution.

In June, ASIC announced that it would allow fintech start-ups to operate in a “regulatory sandbox” for six months, enabling them to test their ideas on the market without a financial services licence.

The regulator stated that the sandbox would potentially speed up investment and market entry by providing “limited testing and concept validation” for fintech start-ups without the costly expense of normal regulatory compliance.

Stollmann argued that this development might also encourage some of Australia’s best and brightest bankers to leave the comfort of the ‘big four’ banks and venture out on their own with disruptive new ideas.

“Australia’s financial services sector is the largest contributor to the national economy, providing about $140bn to GDP last year and employing 450,000 people,” he said.

“The Australian Government’s package of measures will help unleash a new generation of entrepreneurs and investors who want to make everything we do quicker, easier and more productive.”

According to the article by AB+F, fintech investment around the world has reached an estimated $30bn, a figure that is seven times what it was a mere three years ago, making it an attractive sector for both genuine innovators and those chasing the next big thing.

“Australia needs to make itself fintech friendly if it wants to set itself up for the next generation of economic growth,” said

Stollmann. “If it does, Australia could become the fintech hub of Asia, servicing a market of more than three billion people, including a rampant Chinese economy.”

He added that Australia is now creating an ecosystem of fintech start-up companies that are working together to provide a 21st century suite of banking services for customers and businesses.

“What that means is that the old and slow banks may be replaced by 100 smaller organisations working together,” he said, reiterating his prediction that one of Australia’s major banks could fall by the wayside.

“It is possible that within 20 years one of the current big four banks will no longer be with us. The only question is, which one will it be?”

Most of the banks have been reluctant to speak publicly about the challenges posed by fintechs. However, earlier this month, Commonwealth Bank CEO Ian Narev told a gathering at the Centre for Independent Studies that his organisation would be “toast” within 10 years if it didn’t innovate, according to AB+F. He refuted the notion that innovation and technology was only the domain of the start-up, however, describing Commonwealth Bank as the “big dog sleeping on the porch”.

But while some of the red tape has been cut, fintechs will still face restrictions during during the six-month period.

The sandbox will restrict businesses to up to 100 retail clients, a maximum exposure limit of $10,000, and the total exposure of all clients (both wholesale and retail) to under $5m.

Furthermore, the business must maintain consumer protections such as dispute resolution, compensation arrangements and disclosure obligations.

The corporate regulator is also expected to release a regulatory guide in August based on its digital financial consultation paper. This should clarify regulation for stand-alone robo-advice providers and may place more pressure on single operators providing retail advice.

than factors like

3%

privacy of information

5%

ease of full approval Source: RFi Group

VEDA’S ZIPID PILOT TRAIL EXTENDED ING DIRECT has extended its pilot trail of Veda’s ZipID to brokers across Australia in order to make the customer verification process more efficient. According to the July issue of Australian Retail Banker, the purpose of the identity verification service is to shift the administrative onus of ID checks for brokers and their clients to Veda in order to speed up mortgage application and approval processes. The bank has stated that the system has been proved to decrease the approval process time by up to three days.

Australian Retail Banker said ZipID also had the potential to improve borrower satisfaction, given its ability to integrate into the borrower’s personal schedule and remove paperwork.

Mark Woolnough, head of third party distribution at ING DIRECT, indicated that since the initial pilot of ZipID late last year there has been promising feedback, with borrowers championing the flexibility and convenience, and brokers enjoying the ability to stay in control of the application process.

The expansion of ZipID will also support brokers who do not operate a face-to-face business model.

28

COALFACE a much smaller product offering. We were literally selling Aussie Home Loans securitised products ...

In those days we were very much another finance provider, not so much a broker.”

ROGER WARD Owner and director of Cairns Mortgage Brokers Roger Ward talks to Australian Broker about his diverse career, which has led this year to him being crowned Best Regional Mortgage Broker in Queensland

FROM SKI guide to real estate agent, to broker, banker and back to broker again, Roger Ward has done it all. His eclectic background and experience has spanned two continents, survived the GFC and culminated in the establishment of Cairns Mortgage Brokers, a fiercely successful brokerage located in tropical North Queensland. To top it all off, Ward was just recognised as Best Regional Mortgage Broker in Queensland, receiving the 2016 MFAA State Excellence Award for his achievement.

Cairns Mortgage Brokers was founded by Ward and his wife, Michelle, in June 2014.

From slopes to Symond After spending his early 20s living in Europe and working as a ski guide in Courchevel in the French Alps, Ward decided to go home and “get a real job”.

“Skiing is one of those games where you have a great time but you don’t get paid any money for it.

In my last season I was earning about £50 a week, plus my board. It is great to have a fantastic time, but I had to come back to Australia eventually,” he tells Australian Broker.

Upon arriving home, Ward’s first “real job” was working with his father as a real estate agent.

However, Ward – who now holds a diploma in both mortgage broking and financial services – quickly realised his passion for the financial side

of the real estate transaction and joined Aussie Home Loans in 1995, only three years after the franchise was established by John Symond.

“Broking was a new and emerging business at that stage … I felt that it was a business I’d like to be involved in. Aussie was a great place to start because they had training and plenty of market presence.”

Ward worked as an Aussie mortgage broker in Campbelltown in Sydney’s west for three years.

“It was an exciting time because John Symond was very hands-on in the early years. I can remember going to his sales meetings at 7:30 in the morning at Parramatta, and him being full of such ambition and positivity about Aussie’s place in the market and where we were going.

“That placed a lot of enthusiasm in the sales force they had. It was very exciting to be a part of that.”

Interestingly, Ward recalls that a lot of Aussie’s business – and his first experience of being a mortgage broker – was focused on refinancing.

“In the early days, we were going to people and refinancing them and they were pretty modest loan amounts. There was a cost benefit but it was pretty minor because of the low loan amounts. People were just so motivated because they just wanted to get away from the banks.

“Mortgage broking in the very beginning with Aussie Home Loans was not like it is today – we had

From broking to banking and back again After three years at Aussie Home Loans, Ward decided to try yet another side of the transaction, and joined Westpac as a bank manager.

“What the banks wanted in those days was the broking experience from a bank manager. What I’d learnt in those first few years at Aussie was how to quickly engage the client and how to achieve a much higher conversion from opportunity to application. It was much higher than you would get from a bank manager.

“The banks wanted staff who were motivated and sales oriented but could also still deliver quality lending outcomes.”

Ward then jumped ship from Westpac to ANZ where he gained experience in financial planning, becoming an area manager for premium financial services and managing a team of 17.

In 2009, Ward was named a Senior Fellow of the Financial Services Institute of Australasia (Finsia) by invitation of the board. He is one of only three mortgage brokers in Queensland who has earned Senior Fellow status.

Ward says that although working on the banking side gave him a more diverse client experience and more exposure to business banking, he eventually decided to go back to mortgage broking, where he could work for himself and earn a better living.

Ward founded his namesake, Ward Finance, which he ran until after the GFC. Being an independent mortgage broker during the GFC was an eye-opening experience, he says.

“When the GFC came along I had already spent 15 years in the banking game, so I had my own preconceived ideas. Through those 15 years we had never been tested with a substantial downturn,” he says.

“But post-GFC, what it showed me was that a lot of those assumptions I’d made about the ability of the banking sector, and especially the stability of the second- and third-tier lenders, was fatally flawed.

“I was very unhappy about the response from a number of these institutions where I had placed a lot of clients. Born out of that was a new financial reality that when you are lending it is not just about rate and prices, you also have to consider the quality of the lender.”

Following the GFC, Ward and his wife moved to Port Douglas and had a year’s sabbatical before relocating to Cairns and opening Cairns Mortgage Brokers. The success of this business, he says, has been “tremendous”.

“The biggest challenge for me in the business at the moment is putting on staff. Cairns Mortgage Brokers is growing so aggressively that managing the volume is really the biggest problem we’ve got – which is a nice problem to have.”

But conquering the commercial sector will be Cairns Mortgage Brokers’ next challenge, and Ward hopes to replicate the success they have had in the residential market.

“We do have plans to expand; we are looking to open up a commercial arm in Cairns this year,” Ward tells Australian Broker.

“Commercial is very underserviced up here and there is absolutely a big market.”

29

PEOPLE CAUGHT ON CAMERA Australia’s leading mortgage and finance industry performers were recently honoured at the annual MFAA Excellence Awards at Palladium at Crown in Melbourne. Fifteen national winners were announced this year, with new categories reflecting the achievements of the association’s members. The awards were judged and audited by an independent panel of industry experts, and winners included ANZ, which took out the QBE Major Lender award, and Suncorp, which won the Genworth Non Major Lender award. SF Capital’s Tommy Lim won the NAB Newcomer award, while Paul Lambess from CVG Finance took home the trophy for AFG Young Professional of the Year.

30

PEOPLE HOT SEAT

GRAEME SALT Director of Origin Finance Graeme Salt, on why he thinks robo-advice will never be a real threat, and his love of Australian beer

Who or what inspired you to become a broker?

The first broker I used was about as much use as a chocolate teapot.

However, the second was dynamite. From day one I had confidence in A her, and the loan she proposed went through first time – even though it was quite complicated. Watching her was eye-opening and I thought, “I can do that!”

Q

What do you think will be the biggest innovation in the mortgage industry over the next five years?

Changes will be due to further market segmentation. Offshoring will A continue to grow as brokers drive efficiency by focusing on the professional part of lending themselves, while outsourcing the routine tasks overseas.

However, I remain to be convinced that there will be much growth in robo-advice. When it comes to funding someone’s dream home, borrowers are going to want to deal with a person they trust.

Q

What have been the biggest changes you’ve already witnessed in the industry over your career?

The thing about broking is that nothing stays the same. I started just A after the GFC – things were tough; some banks froze their lending and others were just pulling out completely. At the time, many of my friends thought I was mad getting into lending. But, in business, you have to back yourself.

Subsequently, lending started to get easier and we have had a bountiful few years. Now, the banks are getting more conservative due to APRA’s concerns. We are probably going to have a quieter few years, at which point the ice will start to melt as the banks make lending easier again.

Q

What is the most memorable piece of advice you’ve ever received?

When it comes to business: look after your clients and your A clients will look after your business. Otherwise, I have always been taught to treat people with respect – no matter their status.

Q

If you could have dinner with any three people (dead or alive) who would they be and why?

My passions are sport, A economics and beer.

Journalist George Megalogenis would be there for the first two topics, and the brewer Chuck Hahn would be there for the last.

It would be great to talk about how he revolutionised beer in Australia.

I would also like to meet Harold Holt – just so we could all know if there really was a submarine waiting for him.

Q

BOOK YOUR TABLE NOW

DAMIEN ROYLANCE ENTOURAGE FINANCE BROKER OF THE YEAR - PRODUCTIVITY 2015

FRIDAY 21 OCTOBER 2016 | THE STAR SYDNEY www.australianmortgageawards.com.au

Event partner

Award sponsors

Official publications

Organised by