The Finance Brokers Association of Australia (FBAA) has questioned the results of a survey released by the Mortgage and Finance Association of Australia (MFAA) and accused the association of letting brokers down.
FBAA Executive Director Peter White said a report commissioned by the MFAA that asked about fee for service undermined the entire broking sector and sent mixed messages to regulators and legislators.
“Firstly the survey is not credible because the question asked was in their own words ‘hypothetical’ and I believe misleading.
“People can say anything to a survey question but when it comes to the crunch I question whether people will be willing to pay, particularly if it meant higher interest rates, less competition for banks and other factors that would result from such a shift.”
He also said that the FBAA had researched the way brokers are paid across the world and had confirmed that the current commission structure was consistent with global standards – in some cases Australian brokers are paid less – but remain viable and competitive.
Mr White also disagreed with the information being released by the MFAA about customer loyalty to banks, calling the survey and subsequent publicity bizarre.
“Let me make this point clear – as an industry association the FBAA has never publicly criticised the MFAA, because we are all in the same industry working towards the same goals, but in this case we cannot remain silent.”
“That the MFAA would not only decide to ask these ridiculous questions, but then release flawed results to the Australian media that cuts across the good work we and the rest of the industry have been doing with regulators and MPs, is beyond comprehension.”
He said the leadership of the MFAA needs to take a “good look at their priorities” if it wants to retain the goodwill of their members.
“Industry associations exist to advocate for our members and work in their best interest, not smack them across the mouth, which this survey does.”