Consumer groups join broker commission talks

by Miklos Bolza05 Sep 2017
Members of the combined industry forum have met for a third time to discuss the industry’s response to the Australian Securities & Investments Commission’s (ASIC’s) report on broker remuneration.

A spokesperson from the forum said that the interest of consumers was a key priority for the group, with consumer representatives now participating in the discussions.

This means the forum currently includes representatives from the bank and non-bank lenders, aggregators, brokers and consumer groups, as well as the five major industry groups: the Mortgage and Finance Association of Australia (MFAA), the Finance Brokers Association of Australia (FBAA), the Australian Bankers’ Association (ABA), the Customer Owned Banking Association (COBA) and the Australian Finance Industry Association (AFIA).

The main development of this third meeting was the formation of six new working groups which will look at issues such as commission models, enhanced governance and greater transparency. These groups will report back to the forum on a monthly basis.

An initial response will then be supplied to the Treasury, ASIC and the industry by November 2017.

Further steps taken by the forum include documenting recent industry improvements to practice, assessing steps the industry can take to address ASIC’s proposals, and preparing potential policy solutions for the Federal Government.

“The forum welcomes this week’s acknowledgment by the Hon Kelly O’Dwyer that the mortgage industry is working to address the ASIC proposals and her agreement to take the forum’s process into account when finalising the Federal Government’s response to ASIC’s report,” the spokesperson said.

“The forum will continue to work together with stakeholders over the next few months and looks forward to presenting proposed solutions to the government in November.”

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