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.
Brokers foolish to shrug off FoFA
Senate inquiry vindicates MFAA push