FoFA deserves close watch, says MFAA

by Mackenzie McCarty24 Apr 2012

Commission bans for financial planners under the Future of Financial Advice (FoFA) reforms deserve to be closely watched in case of future moves to include brokers, the MFAA has said.

MFAA CEO Phil Naylor has said that at present, there is no indication that the Federal Government is intending to go down the path of FoFA, which will see commissions banned for planners this July.

However, he said it is the type of thing a future government might say would be a good thing to regulate for brokers as well, and for that reason had to be monitored closely.

Naylor said if commissions were banned in mortgage broking in a similar way to the FoFA legislation impost, "that would be a huge issue for the mortgage broking sector as it is now".

Speaking about the association's other lobbying efforts, Naylor said it would greet any more government banking inquiries with scepticism, following previous inquires in 2008 and 2010.

Naylor said that it would be telling the government there is no point in holding more inquiries, unless moves are made to mitigate the underlying causes at play that are hampering lending competition.

The MFAA will tell the government that its banning of exit fees had not improved competition as demonstrated by current non-bank lending volumes. Naylor said it would also continue to push a Candian-style securitisation market model, which was recommended by last year's Senate Economics Committee but has not been implemented by the government.

Related stories:

Brokers foolish to shrug off FoFA

Senate inquiry vindicates MFAA push


  • by ozboy 24/04/2012 10:11:26 AM

    Sounds like someone is trying to justify their existence by flagging something that isn't even on the radar. Talk about the sky is falling!

  • by Country Broker 24/04/2012 10:23:32 AM

    Oh Please by all means keep te quiet behind the scene lobbying going but stop the public comments if its not on the politicans radar keep it that way with silence. The whole concept is different from afinancial planner we do not handle peoples savings or investments are NOT paid from the earnings on those funds , financial planners are. It is a cost impost on the lenders not the borrowers, the borrower is actually receiveing a service from a brokers that alender actually ends up paying for .

  • by Ken Crawford 24/04/2012 10:36:34 AM

    The Exit fees ban was never going to change anything as we all knew long before that how easy it was to change - or not as the case may be. that was a govt furphy making it look like they were doing something. the real cost is the interbank transfer fees - thats the banks profit line. I agree let sleeping dogs lie - dont give the politicians any ideas.