The Finance Brokers Association of Australia (FBAA) says it is continuing to engage with the Federal Minister for Finances and Revenue Services about the future of broking commissions.
Peter White from the FBAA spoke with Minister Kelly O’Dwyer during a private dinner – attended by industry leaders and relevant stakeholders – and briefed her on the fact-finding document supporting the case to keep the current commission structure in place.
Mr White told the minister that comprehensive global research document will be on her desk by the end of the year.
“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.”
The wide ranging research shows how brokers are paid in six overseas and relevant markets.
“The data collected proves that our commission environment is globally sound and fundamentally competitive.”
Mr White said the minister acknowledged she was looking forward to viewing the document ahead of Australian Securities and Investment Commission’s (ASIC) review into remuneration structures.
“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 it appears to be still some time off before any version of this funding model is decided upon.
The FBAA also informed the minister that it is doing more research into the Point of Sale Motor Dealer finance exemptions under the National Consumer Credit Protection act.
“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.”
He argued that motor dealership finance operations must comply with the same regulations as brokers.