The Australian Securities and Investments Commission (ASIC) will review how lenders use referrers, how banker pay changes are playing out, and how lenders oversee brokers. It set out the plans in its 2026–27 banking priorities letter.
The review is expected to begin in the third quarter of 2026–27 and is likely to focus on the short-term variable remuneration changes banks made for proprietary lenders in 2024, as well as lenders' use of referrers. It follows ASIC's work with the Australian Prudential Regulation Authority (APRA) and AUSTRAC on reported cases of mortgage loan fraud.
The review comes after AUSTRAC's Operation Claw, which analysed data from 10 major banks and uncovered potentially hundreds of millions in suspected fraudulent loans, with the same brokers, accountants, and law firms recurring across applications.
With ASIC's review also covering lender oversight of brokers, the Mortgage & Finance Association of Australia (MFAA) warned against adding new rules where strong controls already exist. Brokers are already bound by licensing, responsible lending obligations, and the Best Interests Duty, supported by lender and aggregator oversight and the MFAA's Aggregator Assurance Program.
MFAA chief executive Anja Pannek said the regulator should distinguish between areas already under substantial oversight and those with genuine gaps, rather than layering on more regulation.
Brokers wrote a record 81.6% of new home loans in the June quarter, and the broker population grew 9.1% to 24,116 in 2025, according to the MFAA's latest State of Broking report.
The MFAA welcomed the review, saying it had raised concerns with the regulator for some time about large referrer arrangements and banker incentives.
The association's Fraud and Referrer Working Group, made up of lenders and aggregators, is developing Referrer Risk Management Standards covering the full referrer lifecycle, from onboarding and due diligence through to monitoring and termination. It is also pushing for better information sharing about high-risk intermediaries between organisations.
Pannek said weaknesses in one part of the system could be exploited regardless of channel.
"Fraud does not respect organisational or distribution boundaries," she said.
ASIC's letter also reminds lenders that "all banks, regardless of size, should prioritise the interests of their customers." It continues ASIC's focus on mortgage offset accounts, following a review of eight banks covering more than 70% of the $2.5 trillion home loan market, and on hardship support that is timely and accessible for customers under financial strain.
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