Assistant treasurer allays fears of ASIC funding changes

by Julia Corderoy12 Feb 2016
The assistant treasurer and minister for small business has assured that the proposed industry funding model for ASIC will not adversely affect mortgage brokers.

The chief executive of the FBAA, Peter White met with Kelly O’Dwyer this week and said the discussion was “extremely positive”. 

“I can’t say too much at this stage but I am told the proposed changes to the structure and tiering of fees for funding ASIC will not have an adverse effect on brokers themselves and I was heartened to hear the minister say they have listened to our concerns and reassessed this issue.

“More will be known about the new ASIC funding model but we will just have to await the ASIC capability review currently being finalised by Treasury.”

White said he also took the opportunity to discuss the industry’s concerns over the forthcoming ASIC review into broker commissions.

“This is all about understanding on both sides but from our end, it is vital we tell them the regulations and practices we have in place to eliminate any need for potential changes to commission or more stringent regulations,” White said.

Finally, White said he revisited the need to get lenders mortgage insurance (LMI) disclosed in brokers’ personalised key fact sheets, an issue he has been championing for quite some time, whilst  updating her on the progress of its ASIC submission into the review of flex commissions impacting the motor vehicle industry.

“It was an extremely beneficial evening with open and clear dialogue between the parties,” White said.