Commission Management is a service to process ongoing trail commissions, after the resignation of a Connective Full Member.
The Commission Management service comprises:
Allocation and payment of trail commissions received to brokers and payees
Limited access to Mercury Nexus for any Director or Principal Owner to view and download commission statements and RCTI’s
Access to loan account data
The fee for Commission Management is 2.4% of the monthly trail commission and is deducted from trail commission income prior to payment (subject to the limits below).
The fee is capped at $500 per month and has a minimum of $80. GST will be applied to the fee. If the trail is less than $80 the fee will be 100% of the trail and the group will not receive a payment from Connective.
Where brokers have ongoing payee splits, the fee will be calculated based on all commission for the group and deducted from the head partner or, if the head partner has insufficient funds, payees at the discretion of Connective.
Clawbacks charged by lenders will continue to be deducted from commission payable to brokers in Commission Management in the usual way. Where a group has insufficient trail commission to cover clawbacks the amount owed will be held over and deducted from commission payable in subsequent months. The Commission Management Fee may still be charged in months where no commission is paid due to the recovery of clawbacks.
Although you may no longer run an active broking business, Connective and you may still be exposed to claims arising from credit assistance you provided whilst active. As such, the continued payment of commissions is subject to you providing evidence of a current PI policy or that you have activated the runoff cover under your previous PI policy. Current policy documents can be submitted to [email protected] each year upon renewal.
Example 1: Typical 2.4% fee
Example 2: Fee capped at $500 plus GST
Example 3: Minimum fee of $80 plus GST
Example 4: Trail commissions fall below $80 plus GST
