Overview: Learn how trail commissions, fees, clawbacks and access to Mercury Nexus are managed after you resign as a Connective Full Member.
Category (tags): Membership Centre, Mercury Nexus, Commissions, Payments, Administration
Audience: Mortgage, Asset Finance and Commercial Brokers
What is Commission Management?
Commission Management is a service Connective provides to process and pay ongoing trail commissions after a Full Member resigns.
Under this service, you receive:
Allocation and payment of trail commissions to you and any nominated payees
Limited Mercury Nexus access to view and download commission statements and Recipient Created Tax Invoices (RCTIs)
Ongoing access to loan account data
How the Commission Management fee works
Connective charges 2.4% of the monthly trail commission, subject to the limits below:
Maximum fee: $500 per month (plus GST)
Minimum fee: Either $80 per month (plus GST) or 100% of monthly commission — whichever is lower
The fee is deducted before any commission is paid to your group
Important
If your total trail for the month is less than $80, Connective keeps 100% of the trail as the minimum fee. No commission payment will be made to your group for that month.
How fees apply when there are payee splits
If your business has ongoing payee splits, Connective calculates the fee using the total commission for the group.
The fee is deducted in the following order:
From the head partner’s commission
If insufficient, Connective may deduct the remaining amount from payees, at Connective’s discretion
The fee is deducted in the following order:
From the head partner’s commission
If insufficient, Connective may deduct the remaining amount from payees, at Connective’s discretion
How clawbacks are handled
Lender clawbacks continue to apply in the usual way.
Clawbacks are deducted from the commission payable to your group
If insufficient, Connective may deduct the remaining amount from payees, at Connective’s discretion
If your total trail commission is not enough to cover the clawback, the outstanding amount is carried forward and deducted from future payments
The Commission Management fee may still apply even when no commission is paid because of clawback recovery
Important
You may incur the minimum monthly fee during periods where clawbacks offset all commission.
PProfessional indemnity (PI) insurance requirements
Even after resigning, you may still be exposed to claims arising from credit assistance previously provided.
To continue receiving trail commissions, you must maintain:
A current Professional Indemnity (PI) insurance policy, or
Runoff cover under your former PI policy
You must email updated PI policy documents to [email protected] each year.
If PI insurance is not current or has expired, trail commissions may be withheld until valid documentation is supplied.