ASIC's review of mortgage broker remuneration has been made public, with multiple recommendations relating to changing commissions. Join MPA for a live Q&A session on the key points
ASIC's review of mortgage broker remuneration has been made public, with multiple recommendations relating to changing commissions
NOTE: you may need to reload thiswebpage to see the latest points from the Q&A
ASIC have put forward six proposals relating to broker commissions as part of their long-awaited Review of Mortgage Broker Remuneration, which was made public late on Thursday.
These include: changing the standard commission model to reduce the risk of poor consumer outcomes; moving away from bonus commissions and bonus payments, which ASIC says increase the risk of poor consumer outcomes, and moving away from soft dollar benefits, which ASIC says increase the risk of poor consumer outcomes and can undermine competition.
Furthermore, ASIC calls for clearer disclosure of ownership structures within the home loan market to improve competition. They also recommend establishing a new public reporting regime of consumer outcomes and
competition in the home loan market; and improving the oversight of brokers by lenders and aggregators.
ASIC argue that these proposals should be implemented before a further review of the market is conducted in three to four years to determine whether additional changes are required. They also propose a 'shadow shopping' of brokers this year, where ASIC agents posing as consumers will test the quality of advice provided by brokers.
Brokers and other interested parties now have until June to make a submission to The Treasury, who will ultimately decide how ASIC's proposals are implemented, if at all.
Want more specifics? MPA are hosting a live Q&A starting at 10am EST on the key points from the report and how they could impact your business. Simply stay on this webpage and tweet your questions to @MPA_Australia. No sign ins/twitter profile needed to follow the Q&A.
***LIVE Q&A BELOW***
Tweets by @MPA_Australia
NOTE: you may need to reload thiswebpage to see the latest points from the Q&A
ASIC have put forward six proposals relating to broker commissions as part of their long-awaited Review of Mortgage Broker Remuneration, which was made public late on Thursday.
These include: changing the standard commission model to reduce the risk of poor consumer outcomes; moving away from bonus commissions and bonus payments, which ASIC says increase the risk of poor consumer outcomes, and moving away from soft dollar benefits, which ASIC says increase the risk of poor consumer outcomes and can undermine competition.
Furthermore, ASIC calls for clearer disclosure of ownership structures within the home loan market to improve competition. They also recommend establishing a new public reporting regime of consumer outcomes and
competition in the home loan market; and improving the oversight of brokers by lenders and aggregators.
ASIC argue that these proposals should be implemented before a further review of the market is conducted in three to four years to determine whether additional changes are required. They also propose a 'shadow shopping' of brokers this year, where ASIC agents posing as consumers will test the quality of advice provided by brokers.
Brokers and other interested parties now have until June to make a submission to The Treasury, who will ultimately decide how ASIC's proposals are implemented, if at all.
Want more specifics? MPA are hosting a live Q&A starting at 10am EST on the key points from the report and how they could impact your business. Simply stay on this webpage and tweet your questions to @MPA_Australia. No sign ins/twitter profile needed to follow the Q&A.
***LIVE Q&A BELOW***
Tweets by @MPA_Australia
