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Government to act on enforcing adequate ownership disclosure

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Australian Broker | 21 Oct 2015, 08:00 AM Agree 0
The Turnbull government has backed a recommendation by the Financial System Inquiry for mortgage brokers to better disclose vertical integration
  • SEQ Broker | 21 Oct 2015, 09:08 AM Agree 0
    Another Document. I hope the customer does not have to sign. I may consider providing customers with a signature stamp as a good will gesture... Hopefully we can insert the information into the credit guide.
  • GC | 21 Oct 2015, 12:05 PM Agree 0
    More wasted time and money on legislation to justify Govt employee wages.

    People don't give a rats arse about who owns who. At the end of the day does it really matter anyway? Does it really matter who you get the funds from? The crucial point is getting the funds to achieve the goals for the client.

    The important element is the real cost to the client and how they handle the debt. Teach them how to repay the debt quicker and they will save money - irrespective of the interest rate and who supplied the money.

    People really only care about 3 things: how much they can get, how much will it cost for the debt & how long will it take to eliminate the debt.
  • Dave Robinson | 21 Oct 2015, 02:28 PM Agree 0
    I applaud the government for this initiative and if you don't like it then take it up with CBA. CBA's FP department and its vertical integration while not declaring who owned the products has lead to this situation. It will only take an extra sentence "We are owned by XYZ bank" oh and it's only by chance that I recommended their product! ;-)

    Just another reason we can't call ourselves independent. This is all minor stuff in the scheme of things.
  • Papery | 21 Oct 2015, 03:17 PM Agree 0
    This is ridiculous! I'm not owned by any bank!

    My aggregator has financial associations with lenders, but I don't know know if that's as debt or equity, & whether the bank has any right to influence the management & business decisions made by the aggregator (which don't flow through to me as a lowly broker anyway).

    If a lender is offering a preferential product/pricing to one group of brokers this needs to be disclosed & let's not confuse this with white-label products on offer from the likes of Advantedge like FAST-Lend, PLAN-Lend & others.

    And what about lenders that aren't on your aggregator's panel, do we need to disclose why they aren't? Will we have to disclose the detail as to why certain lenders aren't recommended because of accreditation & volume hurdles?

    I agree with GC...this is getting out of control & away from what we do & why we do it & does a client bloody well care after or even during the event anyway... They have their not unsuitable finance, which has met their goals & objectives, & most likely got a great deal from the broker as well as ongoing post settlement service & a long term Relationship irrespective of the lender.

    In respect of the financial planner debacle, it has no relevance. Consider the flow of funds to the client. And variations in commissions paid by lenders is negligible.
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