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Remuneration review to extend beyond brokers

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Australian Broker | 25 May 2016, 08:00 AM Agree 0
In its final scoping document, ASIC has confirmed its review into the mortgage broking sector will extend beyond just mortgage brokers
  • Comeoffit | 25 May 2016, 09:13 AM Agree 1
    You do have to wonder why an already regulated sector with documented transparency around broker remuneration; with a highly competitive market needs ASIC to run a review.
    • SA Broker | 25 May 2016, 09:44 AM Agree 1
      Agreed. No doubt at bank request - to see if they can get the same business for less.
  • FOFAalloveragain | 25 May 2016, 09:44 AM Agree 0
    Looks and sounds a lot like FOFA for the lending industry....
  • Joke | 25 May 2016, 10:54 AM Agree 1
    Correct - it's hard to be more transparent than stating how much you earn in the credit proposal and presenting a list of commission rates for all lenders on your panel. The rate is the rate so nothing is hidden in it.

    Whatever the outcome from ASIC, banks will find justification in reducing upfronts no doubt.
  • Broker | 26 May 2016, 11:37 AM Agree 1
    ASIC Review = ASIC and the banks working in cahoots, and starting with the end in mind - that is how can we, the banks, pay brokers less or if possible nothing at all. The rest of the scoping paper is just hot air that has very little to do with consumer outcomes, consumers are already happily voting for brokers with their feet.

    I will be rather surprised if brokers do not end up with less. History tells us that as soon as the first bank drops a commission level the rest will collude and fall into line like sheep.

    It will be judgement day for just how useful or useless our almighty fee collecting broker organisations are...
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