The deputy chairman of ASIC has said mortgage introducers will be a key focus area for the regulator as a part of its review into the mortgage broking sector.
Last month, ASIC conducted roundtables with key industry stakeholders to consult on the mortgage broker remuneration review. Speaking at the ASIC Annual Forum in Sydney yesterday, deputy chairman Peter Kell said there wasn’t many “surprises” from these consultations, however, the regulator will be keeping its eye on mortgage introducers.
“One area we have realised that possibly does need some vision or focus is the growth in so called ‘introducers’ in the mortgage broker space, who seem to have a less formal role in helping to bring customers to brokers and lenders,” Kell said.
“There are potential some conflicts of interest there that need to be looked at.”
Kell also wanted to comment on the accusations the regulator has preconceived biases about the mortgage broking sector.
“About the only other thing I will say is there seems to be a lot of people in the sector who believe ASIC – without even really commencing the whole review – has already made its mind up on exactly what it is going to find and what recommendations it is going to make. I ensure you this is not the case. This will be a very open and transparent review.”
According to Kell, the review is not an investigation of the sector.
“I should say at the outset that it is not an investigation as such, it was a recommendation coming out of the financial system inquiry that ASIC undertake a review of mortgage broker remuneration and the industry structures in the sector,” Kell said.
“For the obvious reason that there’s a lot of interest in the way that credit has been provided and to ensure there are no risks around the way lending has been structured.”