ASIC broker remuneration report positive – FBAA

The Finance Brokers Association of Australia (FBAA) says the ASIC report on finance broker remuneration that was released yesterday is positive for the industry and an endorsement of the FBAA’s position and public comments.

FBAA executive director Peter White said he was privileged to have viewed the key findings and proposals under confidence four weeks ago.

“In general it is a very good report and supports what I have said for the past twelve months or more in that base-line commissions are perfectly responsible in our market place and they should not change, while incentives that promote volumes risk poor consumer outcomes and must go.

“Truth comes through transparency, and therefore ownerships and disclosures proves that we as an industry have nothing to hide.

However he said that whether some of the data goes far enough to form conclusive outcomes, is a question that needs to be discussed further.

“There are a couple of such matters that we have already raised and will be further discussing with Treasury.”

Mr White said the FBAA is continuing in-depth discussions with ASIC on several fronts, and is formulating its response to Treasury in conjunction with input from members and key industry stakeholders.

“We look forward to further discussions with Treasury and we continue to be confident in the positive and sound position brokers’ value-proposition holds for borrowers.

“For now we need to absorb all that is within this paper and make informed positive responses knowing that fundamentally we have a strong, solid industry that will have every opportunity to attain over 70 per cent origination market share in home lending in Australia.”