ASIC briefs O’Dwyer on remuneration review

by Miklos Bolza16 Mar 2017
The Australian Securities and Investments Commission (ASIC) has briefed Financial Services Minister Kelly O’Dwyer about its broker remuneration review, suggesting a shift away from volume-based commissions and soft dollar incentives.

As reported by the Australian Financial Review, the regulator also recommended increased disclosure by banks with vertically integrated business models.

ASIC handed the report over to O’Dwyer on Wednesday (15 March).

The regulations are likely to eliminate volume-based incentives from the industry as they have the potential to encourage brokers to write more loans then necessary.

Soft incentives such as sponsorships, overseas trips and prestigious industry events for high end brokers will also be on the chopping block.

Despite these recommendations, AFR said that the ASIC report endorses the core commission-based remuneration system used by brokers.

More to come.

COMMENTS

  • by SEQ Broker 16/03/2017 9:56:30 AM

    Really? And how much money did that cost the taxpayer?

  • by Aaron 16/03/2017 10:10:26 AM

    and how long did it take? Luckily we didn't put our business's on hold until the outcome......

  • by Skeptikal 16/03/2017 10:11:52 AM

    What about Banks insisting on minimum volume requirements and cancelling Brokers accreditations if they do mot meet them. Encouraging Brokers to use a particular bank so they don't lose their accreditation. That should also be bannef