The Turnbull Government today released the Australian Securities and Investment Commission’s (ASIC) ‘Review of Mortgage Broker Remuneration’ for public consultation.
The Government requested ASIC undertake an industry-wide review in November 2015 as part of its response to the Financial System Inquiry.
The Review found that some aspects of the current mortgage broker remuneration and ownership structures could create a conflict of interest that may contribute to poor consumer outcomes.
The Review outlines a number of proposals for industry aimed at improving consumer outcomes, including:
- improving the standard commission model for mortgage brokers;
- moving away from bonus commissions and soft-dollar benefits;
- increasing the disclosure of mortgage broker ownership structures; and
- improving the oversight of mortgage brokers by lenders and aggregators.
“It is important that industry have the opportunity to fully consider ASIC’s report and provide feedback to Treasury as part of a three month consultation process,” the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said.
Interested parties are encouraged to make a submission on the Review. Submissions can be made via the Treasury website until 30 June 2017.