Commission Rebate

Has anyone used a commission refund/rebate service and how do they work?
Are they safe and do you get much back? There are a number of them offering these services, not sure what to do, as my planner has not given me service in over 5 years.

 

I use YourShare and it works fine for me. Are they safe? Well, you have to trust them like any business that promises to pay you money, but look at it this way: in the worst case scenario (if they don't pay) you'll be in the same boat as if you didn't use this service, wouldn't you?

My only annoyance with YourShare is that they attach their "nomination form" with every email they send me. But for a few hundred dollars a year I can live with that.

Another issue I've come across is that some fund managers, as well as my income protection insurer, insist on contacting my "adviser" (ie. YourShare) when they have something to tell me, even though I've told them to contact me directly. That's obviously the insurer/fund manager's fault, not YourShare's, but it's an issue from time to time.

Still, I find it quite worthwhile on the whole.

 

Commission refunds

I saw an article in this weeks Australian wealth section about this. It talks about two providers - mymoney which it says costs $240 and irebate $395
- here is the article

http://www.theaustralian.com.au/business/wealth/end-of-the-road-for-trail-commissions-ripoll-report/story-e6frgac6-1225807997253[/URL]

 

I hope they do make trailing commissions illegal or, at least, "officially frowned upon". They're just a waste of money for everyone involved, other than the people receiving them for doing nothing.

 

Commissions here to stay (unfortunately)

From what I have read, the commission problem isn't going to go away. All the talk about doing away with commissions, particularly ongoing trail commissions seem to be around new products from 2012 onwards. No one is talking about removing them from existing products, and insurance is excluded all together.

So, all of us with existing products are going to keep having fees taken out of our accounts to pay some person we haven't seen for years. Since reading some of the comments in this discussion I am going to have a look into these commission refund services too becasue I haven't seen my planner in years (in fact I don't think he even owns the business anymore).

 

Hi Max,

How did you go?

Cheers,

Dan

 

Commission Refund

After doing my research and reading a number of articles on the trail commission debate I have decided to join a group called My Money who pay monthly and direct to my bank account. I will put a blog on once I get my first payment. i have decided that these trail commissions are better in my hands and I can spend them the way I like. I wish I did it before Christmas I could use the cash at the moment.

 

Hi ASX Broker
I looked around at the different providers, there is even a report done by Choice which covers most of them. I decided on mymoney because they were the lowest cost and the only ones that paid monthly. I've registered my insurance and managed funds with them and it was all pretty easy.

 

Hi Max,

Can you also register home loans to get those commissions rebated?

Thanks,

Dan

 

Hi Dan

I don't think so - there was no mention on the website about mortgages which is a real shame.

Max

 

There was a recent article on this in Choice magazine. It is a bit misleading though as it ranked by repayment of trails and ignored contribution fees. It is also notable that some refund money based on overall commissions received by their client and other just on each individual investment, because most have a minimum commission amount before they start rebating this distinction is important.