With the submission deadline for the ASIC Review of Mortgage Broker Remuneration
now passed and the major players providing their responses to the proposed changes, the question is where the industry goes from here.
While ASIC and Treasury have not given a specific timeline on what will happen, they will continue to monitor and stay close to the process, Mike Felton
, CEO of the Mortgage & Finance Association of Australia (MFAA), told Australian Broker
The MFAA would liaise with both ASIC and Treasury to discuss details about the proposed changes and what they would look like, he said.
“It depends on the quality of the submissions and the progress that we make. If we continue to show progress, we will be given the time to make meaningful change.”
Felton said that a specific timeline will be discussed within the second combined industry forum which will be held mid-July. The inaugural event, the first of its kind, was held on 9 June.
The MFAA along with three other industry associations – the Finance Brokers Association of Australia
(FBAA), Australian Bankers’ Association (ABA), and Customer Owned Banking Association (COBA) – will take joint leadership moving forward, the aim being to completely self-regulate the industry without the need for government or regulatory interference.
One of the challenges is finding a vehicle through which self-regulation can be implemented, Felton said. While this may come in the form of a code of practice, it is still early in the process with final details needed to be decided on, he added.
“At this stage, it is unanimous across the MFAA’s entire aggregator panel that everybody wants to be involved in this process of self-regulation.”
“We will continue to liaise very closely with our members and consult and obtain feedback in terms of the progress going forwards. What cannot happen is that becomes a void. We will make sure that we keep our member groups in the loop.”
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