The peak body representing mortgage brokers has welcomed Labor’s statement on reforms for brokers saying it will ease some of the mental health duress being felt throughout the nation.

Finance Brokers Association of Australia managing director Peter White said the announcement provides some much-needed clarity for brokers moving forward, while also ensuring transparency on commissions.

“We will continue dialogue with both sides of politics to further shape the end model so that the borrower wins and competition in the market is maintained.

“Labor’s decision to scrap trail commissions and standardise commissions at a fixed percentage of loan size is positive but there needs to be more work done around clawbacks.

“There needs to be some protective mechanism in place, and that will be one of the key issues for us moving forward.”

Mr White said the government and Labor were aligned in many of their responses to the royal commission but not all.

“Both sides of politics should be congratulated for their willingness to listen to the industry but those talks are not over yet,” Mr White said.