Finance Brokers Association of Australia (FBAA
) executive director Peter White has brought up a number of industry issues with Prime Minister Malcolm Turnbull.
Turnbull met White as well as a group of business leaders at a meeting in Launceston yesterday (20 April) where topics such as recent movements by the Australian Prudential Regulation Authority (APRA) on interest-only and investment lending caps were raised.
“One of the unintended consequences of the changes in interest-only and investment lending is that could potentially have quite negative consequences for small businesses.” White told Australian Broker
“A lot of small businesses leverage their personal homes and residential properties for investment in their business or for debts if they need it in their business. If they cannot access the appropriate style of debt that suits their needs because of these caps, it’s going to have a negative impact on businesses.”
As well as stifling growth, this could have worse flow-on effects such as restricting employment opportunities, borrowing capabilities, and stretching government purse strings by putting more people on the dole, White said.
“They’re stretches of the impacts that potentially can come off consequences of what APRA’s doing at the moment. My concern is that these sorts of things haven’t been properly thought through.”
White also talked briefly about ASIC's stance on the broker remuneration review.
“I made a fairly short comment that we’re working with ASIC and Treasury on that,” White said. “I also noted the Sedgwick report to which I said very firmly I’m not a fan. There are various components of the commentary that have not been thought through in the proper fashion relative to the broking sector.”
Finally, White also touched upon the excessive red tape hoisted by the regulators on the broking and lending sector.
While the Prime Minister didn’t give his official response on these issues, there was acknowledgement of the issues and concerns raised, White said.
When asked about Turnbull’s personal manner, White had nothing but praise.
“He can hold his own very, very well. He obviously runs a very intense diary and schedule. He was looking a little bit tired there at times but he was very engaging, very personable, happy to chat, and not scared of a conversation.”
“I always enjoy things like this. You actually see a more realistic side of the person because they’re having to talk on their feet with no camera. The questions come out of left field and they’re not prepped on what they’re going to be.”
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