CBA Announces New Clawback Policy Change

The Commonwealth Bank of Australia (CBA) has announced a new clawback policy change that will take effect for all new applications submitted on and from October 1, 2023.

Under the new policy, the clawback for the first 12 months will remain unchanged at 100%. However, this will reduce to 50% in month 13 and continue to reduce each month until month 24, when it will reach 0%.
This means that brokers will be able to keep 50% of the trail commission they earn after the first 12 months, and this percentage will increase each month until they are no longer subject to clawback.

The news was not warmly received by brokers with some even expressing concerns that the change will actually disadvantage brokers.

"This is a significant change that will have a negative impact on brokers," said one industry insider. "It means that brokers will have to work even harder to earn the same amount of commission, and this will put pressure on their margins."

It remains to be seen whether the CBA's new clawback policy will be adopted by other lenders. However, if it does, it could have a significant impact on the financial services industry.

What do you think of the CBA's new clawback policy change?

Are you happy with the change, or do you think it will disadvantage brokers?

Do you think other lenders will follow the CBA's lead?

Share your thoughts in the comments below.