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Missing or Reduced Trail Commissions

Updated over a week ago

Use this guide to understand why trail commissions may be missing or lower than expected, how to identify the cause and when to lodge a Commission Enquiry with the Commissions Team.

Before you lodge a commission enquiry

Check the following items first — most trail discrepancies can be identified without investigation from the Commissions Team.

Important:
Connective can investigate specific loan accounts, but cannot analyse your full commission book. Use the tools below to locate loans that require review.

Lender Policies

Step 1: Check lender policy rules

Different lenders apply unique trail rules. These may include:

  • first-year no-trail periods

  • stepped or pro-rata trail payments

  • reduced trail at certain LVR thresholds

  • balance-based trail (not loan amount)

  • product-specific conditions (e.g. insurance requirements)

You can review these under the lender’s commission information in the Research App in Mercury.

Step 2: Use the Trail Variation Report

The Trail Variation Report highlights loans where trail has increased or decreased by a defined threshold. This helps you identify specific accounts for review.

To run the report:

  1. Log in to Mercury Nexus.

  2. Navigate to the Commissions app.

  3. Set your filters (date range, threshold).

  4. Launch the report and review the flagged loans.

Tip:
Use the loan ID from the report to cross-check the relevant commission statement quickly.

Checking your Statement

Step 3: Check your commission statement

Many trail discrepancies relate to loan status or balances. In the Commissions app, you can check:

  • discharged or closed loans

  • offset balance impact

  • arrears issues

  • comments from the Commissions Team

To review trail details:

  1. Open the Commissions app.

  2. Select Statements.

  3. Choose the statement period where you see an issue.

  4. Check the Arrears and Discharge tabs, or generate a Full Statement.

  5. Review any comments explaining trail reductions.

Note:
Trail is calculated daily. February trail is typically around 10% lower because there are fewer days in the month.

Common reasons for missing or reduced trail

Trail may be reduced or missing because of:

  • large offset balances reducing the balance on which trail is calculated

  • loan discharge or closure

  • pro-rata payments in the first month after settlement

  • lenders that pay trail only from the second year

  • reduced trail at certain LVR thresholds

  • natural balance reduction as borrowers make repayments

  • lenders requiring ongoing conditions (e.g. insurance policies)

When to lodge a Commission Enquiry

Submit a Commission Enquiry if:

  • you have identified a specific loan where the trail appears incorrect

  • the discrepancy does not relate to lender rules or loan status

  • the statement comments do not resolve your concern

  • you believe an allocation or payment error has occurred

Submit using the Commission Enquiry process.

Need help?

If you need help understanding trail payments or identifying a discrepancy, contact your Partnership Manager or email [email protected].

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