Parties to the agreement:
STANDARD INTEGRATED LENDING PTY LIMITED ACN 616 429 602 of Level 13, 132
Arthur Street, North Sydney, NSW 2060 (“the broker”)
You, (“the referrer”).
The advent of the National Consumer Credit Protection Act 2009 (the Act) has
required that we have a formal agreement in place to detail our obligations in
respect to the conduct of referring customers. This letter is intended to
explain those obligations and to record the terms of our arrangement which is as
- only engage in credit activities as a referrer incidentally
to another business you are carrying on,
- not charge a fee to the consumer for the referral,
- only inform the consumer that we are able to arrange loans and leases but not specify any particular product, and not provide any recommendations or advice concerning loans or leases,
- inform the consumer of any commissions or other benefits you may receive,
- obtain the consent of the consumer to pass their name,
contact details and a short description of the purpose for which the consumer may want the credit or lease, and
- pass the consumer’s contact details to us within five
business days of informing the consumer that we are able to arrange loans and leases but not any specified particular product.
We recommend that you advise customers about our services in a form
similar to the following script:
“Our business has a referral arrangement with Adam Stephenson from
Standard Integrated Lending, would you mind if I passed your details to them,
then they can contact you to offer their assistance for your finance
And if the consumer responds affirmatively:
“I just need to let you know that Adam Stephenson from Standard
Integrated Lending is a licensed broker and if your loan application is
successful, that I will be paid a referral fee. Fees will be disclosed within
the documentation provided to you by the broker.
Please be aware that you’re under no obligation to use their services,
so you can decline their assistance at that point if you want to.”
Standard Integrated Lending must disclose to the client all commissions and
fees payable to it from any source and a brokerage referral fee involving you.
If the client decides not to proceed with any recommendations, we will not make
any further unsolicited contact with your client.
How we get paid
Standard Integrated Lending receives two streams of income from the lenders, through our Aggregator, Connective Lending Services.
- An Upfront Commission ranges
between 0.5% and 0.65% of the Limit (loan/s) established. It is paid at the end of the month after the loan has settled.
- A Trailing Commission is paid
monthly, in arrears; it is a percentage of the outstanding balance of the loans we have written. Trailing Commissions vary amongst the lenders, generally between 0.15% and 0.25% of the outstanding balance (loan balance less
offset account balance).
Sometimes, the lenders do not pay any trailing income in the first year.
Most banks do not pay the monthly trail during any period where the client’s
loan may be in arrears of scheduled repayments.
Sometimes (but rarely) Standard Integrated Lending only receives 0.3%
upfront and no trail when we need to use a certain lender.
Referral Fee payable
On completion of your referred client’s new finance business by Standard
Integrated Lending, we agree that Standard Integrated Lending will pay you as
- A minimum of 15bps (basis points) of the value of the loan at settlement with the remainder commission from settlement retained by Standard Integrated Lending.
15bps is equivalent to 0.15% or 0.0015 to the nearest
- Example: $1,000,000 loan settled x 15bps = $1,500
- Referral Fee of $1,500+GST payable to the referrer.
A Clawback occurs when a loan is discharged from the bank in the
first 2 years, meaning that the bank takes back the commission originally
earned. Clawback rates are generally 100% in the first year and only 50% in the
second year (some lenders do not initiate a clawback after 18 months of
Lenders are now re-instating ‘utilisation clawbacks’, where after a period
of 6 or 2 months, we are clawed back on any amount extended that has not
actually been used, whether it is in the loan available for redraw or in an
A Clawback being triggered means that Standard Integrated Lending and you,
our Partner, must pay back the income originally earned on that loan, for the
amount that is clawed back.
Standard Integrated Lending agrees to keep all information, records and
documentation of a private and confidential nature in relation to a client which
comes into possession of Standard Integrated Lending, not to disclose any such
information except as required by law and generally to respect the confidential
nature and integrity of the other party’s relationship with the client.
The relationship between Standard Integrated Lending and you created by this
agreement is that of an independent contractor. Nothing in this agreement
constitutes a party to the partner, agency or authorised representative of
another party or for any purpose or creates any partnership, agency or
This agreement may be terminated by either party on 14 days written notice
to the other. Any termination is without prejudice to any existing rights,
liabilities or obligations of the parties.
Each party is free to enter into referral arrangements with other parties
and to render similar services to other persons.
Assignment & Notices
You cannot assign or transfer any of your rights, benefits or obligations
under this agreement without the written consent of Standard Integrated Lending
except the termination of this agreement.
Any notice or other communication in connection to this agreement must be in
writing and be sent to the address set out of this letter and signed by the
party making the communication or its authorised agent and is deemed to have
been received by the addressee within five days.
Amendment and Waiver
This agreement may not be amended, or any provision waived in whole or in
part except in writing signed by the parties.
We thank you for your cooperation with the above.
If you do not introduce business to us in accordance with the above,
you will be in breach of the Act and liable to substantial fines. If you do not
comply with the above and we continue to accept referrals from you, then we will
be in breach of the Act.
We trust you will understand the rationale of these terms and that they are
driven by the requirements of the Act. Please confirm your acceptance of the
terms and conditions set out in this letter by signing below.
Thank you and we look forward to our continued relationship.
Name: Adam Stephenson
Company: Standard Integrated Lending Pty Ltd
Credit Rep and
Licence Number xxxxx
Date Format: DD slash MM slash YYYY