Financial brokering method

• US 20050108152A1
• Filed: 10/15/2004
• Published: 05/19/2005
• Est. Priority Date: 10/16/2003
• Status: Abandoned Application

• Current Assignee: Universal Integrity Pty Limited
• Original Assignee: Universal Integrity Pty Limited
• Inventors: Tsoa-Lee, Michael, Tsoa-Lee, Trent
• Application Number:
  US10/966,615
• Publication Number:
  US 20050108152A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

The present invention provides a method for providing brokering services by a broker to a customer. The method includes the step of entering into an agreement with the customer, the agreement including a promissory obligation by the broker to pay to the customer an amount based on a commission payable to the broker by a financial product supplier of a financial product, the financial product being selected by the customer, and a promissory obligation by the customer to pay a service fee to the broker. The service fee is based on value of brokering services provided.

Claims

1. A method for providing brokering services by a broker to a customer, said broker being associated with a plurality of financial products, each said financial product being supplied by a financial product supplier having a commission agreement with said broker, including the step of:

entering into an agreement with said customer, said agreement including a promissory obligation by the broker to pay to the customer an amount based on a commission payable to the broker by a financial product supplier of a financial product, said financial product being selected by said customer, and

a promissory obligation by the customer to pay a service fee to said broker, said service fee being based on value of brokering services provided.

2. A method according to claim 1 wherein said amount includes a variable amount.

3. A method according to claim 1, wherein said broker performs said promissory obligation by deducting said service fee from said commission and remitting the balance to said customer.

4. A method according to claim 1, wherein said commission includes an up-front commission and a trail commission.

5. A method according to claim 2, wherein said variable amount is 100% of said commission.

6. A method according to claim 4, wherein said service fee includes a set-up fee and a maintenance fee, said set-up fee being associated with said up-front commission, said maintenance fee being associated with said trail commission.

7. A method according to claim 1, wherein said service fee includes an amount calculated with reference to a tax rate.

8. A method according to claim 1 wherein a flat service fee applies to all financial products that are available through said broker.

9. A method according to claim 1 wherein said service fee is fixed.

10. A method according to claim 1 wherein said service fee is variable, based, at least in part, on one or more of the following:

a number of financial products chosen by said customer;

an amount of time required to transact said financial product;

a cost of performing said transaction of said financial product;

a service level;

a category of said customer.

11. A method according to claim 1 further including the step of disclosing of said commissions payable on said financial products.

12. A method according to claim 11 wherein said disclosure takes place before said customer commences said selection.

20. A method of providing broking services by a broker to a customer, said broker being associated with a plurality of financial product suppliers each providing one or more financial products, the method including the broker collating financial product parameters for each financial product to determine a financial product characteristic for each financial product, ranking the financial products according to their financial product characteristics, the customer selecting a financial product, the broker and customer entering an agreement and implementing the subsequent steps of claim 1.

21. A method as claimed in claim 20 further including the step of collating customer eligibility information and comparing the customer eligibility information against customer eligibility criteria established by each financial product supplier.

13. A method for providing brokering services by a broker to a customer including the step of calculating a true cost of a financial product, said calculation being performed with reference to a commission payable to said broker by a supplier of said financial product.

14. A method for providing brokering services by a broker to a customer including the step of calculating a true cost of a financial product, said calculation being performed with reference to a pay per use feature of a financial product.

15. A method for providing brokering services by a broker to a customer including the step of:

entering an agreement with said customer, said agreement including

a promissory obligation by the broker to pay to the customer a variable amount based on a commission payable to the broker by a financial product supplier of a financial product, said financial product being selected by said customer, and

a promissory obligation by the customer to pay a flat service fee to said broker.

16. A method for providing brokering services by a broker to a customer, said broker being associated with a plurality of financial products, each said financial product being provided by a financial product supplier having a commission agreement with said broker, including the steps of:

entering into an agreement with said customer, said agreement including

a promissory obligation by the broker to enter into an agreement with a financial product supplier, a financial product of said financial product supplier being selected by said customer, said agreement requiring said financial product supplier to pay to the customer a variable amount based on a commission, said commission being otherwise payable to said broker, and

a promissory obligation by the customer to pay a service fee to said broker, said service fee being based on value of brokering services provided.

17. A method for selecting a financial product from a plurality of financial products, each said financial product being provided by a financial product supplier, a product selection facility for said selection being provided by a broker, said product selection being performed by a customer, said product selection facility being capable of disclosing parameters of said financial products, wherein the identity of any product supplier with whom the broker does not have a broker agreement, and (or) the identity of any financial product supplied by a product supplier with whom the broker does not have a broker agreement is not disclosed during the process of product comparison.

18. A method according to claim 17 further including the step of revealing the identity of said financial product supplier and (or) the identity of said financial product in return for a consultancy fee payable by the customer to said broker.

19. A method for selecting a financial product from a plurality of financial products, each said financial product being provided by a financial product supplier, a product selection facility for said selection being provided by a broker, said product selection being performed by a customer, said product selection facility being capable of disclosing of parameters of said financial products, wherein identities of said financial product suppliers and (or) identities of said financial products are not disclosed during the process of product comparison.

22. A financial product matching database system for matching a plurality of financial product requests provided by customers to a plurality of financial products provided by a plurality of financial product suppliers, said system including:

a computer processor;

a financial product database capable of storing financial data in a form readable by said processor, said financial data including commissions payable by said financial product suppliers on said financial products;

database management tools for use by a broker and or by said customers to manage the financial product requests in said database including a tool for creating a financial product request and a tool for creating and modifying requirements for said financial request;

financial product management tools for use by said broker and or by said financial product suppliers to create and modify financial product characteristics specific to said financial products provided by said financial product suppliers;

a software tool using said financial data, said financial product requests and said financial product characteristics to form a product query;

a search tool searching said financial products in said product matching database to return financial products compatible with said product query.

23. A system according to claim 22 wherein said software tool uses said financial data, said financial product requests and said financial product characteristics to calculate a product parameter relating to a financial product, said calculation being performed with reference to a commission payable on said financial product.

24. A system according to claim 23 wherein said product parameter is an interest rate.

25. A system according to claim 23 wherein said financial products are ranked by said product parameter.

26. In a financial product matching database system for matching a plurality of financial product requests provided by customers to a plurality of financial products supplied by a plurality of financial product suppliers, a method for selecting a financial product, said method including the step of calculating a product parameter relating to a financial product, said calculation being performed with reference to a commission payable on said financial product.

27. A method according to claim 26 wherein said product parameter is an interest rate.

28. A method according to claim 26 further including the step of ranking said financial products by said product parameter.

29. A method of using a computer system for selecting a financial product from a plurality of financial products stored in a database, said method including the steps of:

inputting data into the computer system, said data including commissions payable on each of the products;

using the computer system to calculate a product parameter for each of the products, said calculation being performed with reference to said commissions payable on said product; and

using the computer system to rank said products based on said product parameter.