FBAA says global research will back commission stance

by Phil McCarroll13 Sep 2016
The Finance Brokers Association of Australia (FBAA) has promised to deliver the Australian government comprehensive research on commissions as it continues to push for the current commission structure to be retained.
The FBAA has told Federal Minister for Finances and Revenue Services Kelly O’Dwyer that it will deliver a global research document that will show how brokers are paid in six overseas and relevant markets.
FBAA spokesperson Peter White said the research is among the most comprehensive ever carried out in the industry and will prove that Australia’s current commission model is appropriate.
“At no other time has the broking industry seen a collection of data and other information which comprehensively argues the case for retaining the current broking commission model,” White said.
"The data collected proves that our commission environment is globally sound and fundamentally competitive,” he said.
White made the promise to O’Dwyer at a recent private dinner, at which he said the minister also revealed that it is likely to be some time before the model of having the mortgage industry fund the Australian Securities & Investment Commission (ASIC) is finalised.
“We also discussed where matters were at in regards to Treasury’s move to fund ASIC back to industry ACL and AFSL Holders which was due for announcement around May of this year, and she advised that there is still a long way to go before a decision is reached on the makeup of the new financial industry funding model for ASIC,” he said.
White also said he used to the meeting as a chance express to O’DWyer that the FBAA wants to see an end to the Point of Sale Motor Dealer finance exemptions under the National Consumer Credit Protection act and argued that motor dealership finance operations must comply with the same regulations as brokers.
“These exemptions are wrong and to back our case, we will provide the minister with a comprehensive expert regulatory review document showing why they must be removed.”