Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Association concerned over reality of ASIC industry funding model

Notify me of new replies via email
Julia Corderoy | 06 May 2016, 08:01 AM Agree 0
The FBAA has expressed concern over how banks will pass on the cost of the new industry funding model for ASIC
  • Bottom Line | 06 May 2016, 10:18 AM Agree 0
    Given we're a country of "middlemen" enforcing red tape bureaucracy, two things will happen...

    1) Banks will re-arrange commissions - they will still offer the same % rates of commission so they can propaganda that they haven't dropped commissions; but the rate we currently get will apply to less loans than it currently does. For example, "we will now pay less for loans whose LVR is higher than..." etc. This will effectively pass on the cost to brokers. They can then look the government in the eye and say "we didn't pass it on to our customers".

    2) Licence fees for brokers will increase with the propaganda line being "we've managed to keep the increase as low as we can with it being much lower than first proposed."

    All this despite the fact that the paperwork per file has increased significantly. Although the real service my clients receive didn't alter after licencing, they receive the same information in multiple repetitive ways - so much so that it is harder to get them to read all the information than it was 10 years ago. Not sure how they are then better informed under licencing.

    Effectively brokers will be receiving less income and paying more out to the ever growing middlemen, who produce nothing - but that's been the Australian way since 2000.

    Those that can do, do. Those that can't, sit back and collect money from those that can.
  • Broker | 06 May 2016, 04:05 PM Agree 0
    You are spot on Bottom Line - I have no doubt that it will play out exactly as you have outlined.
Post a reply