Another reason not to trust the big banks for your financial advice!

Another reason not to trust the big banks for your financial advice!

As the financial advice fallout from the Royal Commission continues with the big banks, a former branch manager at NAB has plead guilty to defrauding the bank out of thousands of dollars through using the banks introducer program.

Mr Alwan, a former NAB branch manager, was permanently banned from credit card activities last year after he used NAB’s introducer program to receive the referral payment for his uncle. In an attempt to reap the rewards of a large chunk of commission, Mr Alwan told the bank that a NAB introducer had referred 24 borrowers under the loan applications to NAB. The NAB introducer that Mr Alwan had claimed he had assisted was actually his uncle who was operating under the business name ‘Suit Club’.

The NAB introducer program was introduced in 2000 to allow third party ‘introducers’ registered within the bank to refer any potential borrowers. And just like all big banks the introducer would receive commission for the loan.

For Mr Alwan, the fraudulent activity was worth the risk as he was paid out $56,995 in commissions. $56,995 just for commission?! For many Australian’s that is more than their full-time annual salary!

However, the risk may be about to show its consequences with Mr Alwan due to appear before court on 1 October 2019 for sentencing.

NAB has announced it will end its ‘Introducer’ payments program, effective 1 October 2019.

At Power2 we are proud to have our own financial planning license. This means we aren’t tied to any banks, insurance companies or product issuers. We don’t have any weights around our ankles and we aren’t being disrupted or distracted from our corporate structure scrambling to make up for their Royal Commission shortcomings.  For us, it’s business as usual.  We continue to focus on the needs of our clients and choosing the products that are right for you. 

Choosing a local, unrestricted financial advisor gives you peace of mind that YOUR best interests are being looked after and not those of the corporate. We get paid by our clients, not by the product providers, it’s the best way to stay free of conflicts.

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