Royal Commission News

With the Royal Commission recommendations being released on Monday 4th February 2019, the Managing Director of the FBAA has been busy representing it’s members regarding the outcomes and how they will affect the industry.

Click to read, listen or watch each article

15th February 2019

Bendigo Bank urged to look in the mirror before throwing stones at brokers  FBAA website

Summary: Peter White tells Bendigo Bank to ‘focus on your own performance instead of attacking brokers’

13th February 2019

FBAA fights to keep members from falling victim  mpamagazine.com.au

Summary: In the midst of all the talk and reaction brought by the Royal Commission’s recommendation to replace commissions with fees, FBAA managing director Peter White encourages the industry to pause for a moment and evaluate what needs to be done.

12th February 2019

How likely are interest rates to rise post-Royal Commission? yourmortgage.com.au

Summary: The Royal Commission’s recommendations concerning broker commissions could result in dire consequences that will ultimately fall on borrowers, some industry experts say.

11th February 2019

Home loan interest rates could go up if mortgage broker commissions are axed Canstar.com.au

Summary: Banning mortgage broker commissions could lead to less competition and higher home loan interest rates for borrowers, industry groups have warned.

6th February 2019

Interview about royal commission report ABC Radio Brisbane Drive

 Mortgage brokers accused of ‘scaremongering’ over banking inquiry’s commission ban News.com.au

Summary: Mortgage brokers say first homebuyers could be forced to pay thousands of dollars in upfront fees, but critics have slammed the “scare campaign”.

Brokers return fire over trailing commissions plan The Australian

Summary: Mortgage brokers warned against a “kneejerk” reaction by investors as their share prices were smashed by as much as a third over recommendations to ban trailing commissions paid by lenders and potentially shift the cost to borrowers.

 “I have kids”: Mortgage brokers could lose 75% of income as royal commission reality sets in Smart Company

Summary: Independent mortgage brokers say they will be driven out of business by an impending overhaul of their industry sparked by banking royal commission recommendations.

Tasmanian customer-owned Bank of us fears changes to mortgage lending could harm smaller players

The Examiner

Summary: Tasmanian customer-owned Bank of us echoed concerns from mortgage brokers about impending changes to the industry in the aftermath of the banking royal commission.

Bank shares ride out royal commission report InvestorDaily

Summary: The big banks share prices have successfully ridden out the royal commission final report but the same could not be said for all parts of the financial services industry.

Royal commission into banking turns finance industry on its head Dynamic Business

Summary: The findings of the Royal Commission into the banking and financial services sector is expected to turn the finance industry on its head with fears of interest rate rises following a ban on broker commissions.

5th February 2019

 ‘Interest rates are going to go up’: Mortgage broker fury at banking inquiry’s commission crackdown News.com.au

Summary: The mortgage broker industry has reacted with fury to the release of the banking inquiry’s final report, warning that a sweeping ban on commissions could “ruin” many small businesses and lead to borrowers paying higher interest rates.

Interview about royal commission report ABC Radio Adelaide Breakfast

Tom Elliott: The Banking Royal Commission report has got one thing very wrong 3AW

Summary: Tom Elliott says the Banking Royal Commission report could have devastating ramifications for an innocent party, while the big banks effectively get off scot-free.

Drive with Tom Elliott 3AW

Banks pledge change but brokers suffer Nine (AAP)

Summary: Investors have given their initial verdict on the findings of the royal commission, driving the financial sector to what looks like being its best day in more than two years.

Story about royal commission report 10 News

Interview about royal commission report ABC Radio PM

Customers offered faster change in political fight over bank scandals Sydney Morning Herald

Summary: Labor will fast-track a key finding of the Hayne royal commission to scrap “grandfathered” fees paid to financial planners in a challenge to the Morrison government to act more quickly on the scathing report.

Interview about royal commission report

ABC Radio News (played throughout the day)

Banks pledge change but brokers suffer SBS

Summary: Investors have given their initial verdict on the findings of the royal commission, driving the financial sector to what looks like being its best day in more than two years.

Superannuation and home loan sectors likely to be dramatically overhauled after Banking Royal Commission

Nine

Summary: The superannuation and home loan sectors are likely to be dramatically overhauled after a damning report from the banking royal commission.

Banking royal commission: Pain for the banks? Not likely as finance stocks skyrocket The West (AAP)

Summary: Investors have given their initial verdict on the findings of the banking royal commission, driving the financial sector to what looks like being its best day in more than two years.

Story about royal commission 9 News

Hayne’s prescription for ending banking rip-offs Indaily

Summary: Banking royal commissioner Kenneth Hayne QC wants wide-ranging reforms to stop the widespread misconduct that has caused substantial loss to customers while delivering hefty profits to the banks.

Markets reward banks after royal commission shellacking Indaily

Summary: Finance Brokers Association of Australia managing director Peter White warned borrowing costs would increase if Commissioner Hayne’s recommendation that trailing commissions be dumped is accepted.

‘Bastards’: Mortgage broker fury at report Gatton Star

Summary: The mortgage broker industry has reacted with fury to the release of the banking inquiry’s final report, warning that a sweeping ban on commissions could “ruin” many small businesses and lead to borrowers paying higher interest rates.

 ‘Bastards’: Mortgage broker fury at report CQ News

Banks pledge change but brokers suffer The Bull (AAP)

Summary: Investors have given their initial verdict on the findings of the royal commission, driving the financial sector to what looks like being its best day in more than two years.

All eyes on bank stocks after Hayne report Herald Sun (AAP)

Summary: Banks benefit from mortgage broker changes

All eyes on bank stocks after Hayne report Daily Mail (AAP)

Home buyers face fees from broker pay move Nine (AAP)

Summary: Home buyers may have to pay their bank a fee when they take out a loan as a move to a borrower-pays system hits mortgage brokers.

Broker changes tipped to benefit big banks Nine (AAP)

Summary: Moving to a borrower-pays system for mortgage brokers is expected to increase the power of the big banks who some analysts believe have already enjoyed a clear win from the banking royal commission’s final report.

Broker changes tipped to benefit big banks Western Advocate (AAP)

Broker changes tipped to benefit big banks The Islander (AAP)

Broker changes tipped to benefit big banks Katherine Times (AAP)

Broker changes tipped to benefit big banks The Standard (AAP)

Banking royal commission responses News.com.au (AAP)

Summary: What Australia’s major financial institutions are saying in response to Kenneth Hayne’s royal commission final report.

Banking royal commission responses Daily Mail (AAP)

Bill Shorten demands extra sitting weeks to fast-track banking reforms The Guardian

Summary: Labor leader says failure to act will show Coalition ‘putting the interests of the big banks’ first

Battle looms over mortgage broker commissions Banking Day

Summary: The call for a reshaping of mortgage broking industry remuneration is the flashpoint of the Hayne royal commission report, with Labor giving in-principle support to all the recommendations while the Treasurer says a ‘fee for service’ model for the industry would hurt competition.

Banking royal commission: mortgage brokers fuming at loss of trailing commissions Update NewZ

Summary: “We are certainly extremely disappointed with that outcome,” said Peter White, CEO of the Finance Brokers Association of Australia.

Aussie Royal Commission’s final report lashes sales incentives & ex-BNZ boss Andrew Thorburn, brings bad news for mortgage brokers  Interest

Summary: The Financial Markets Authority (FMA) will be emboldened by the Australian Royal Commission’s final report in its quest to rid New Zealand’s financial services sector of sales incentives.

4th February 2019

Money news with Ross Greenwood 2GB

Hayne verdict LIVE: Banks, insurers referred over potential misconduct Sydney Morning Herald

Summary: Brokers warn findings will drive up interest rates

Banking royal commission: Mortgage brokers fuming at loss of trailing commissions Australian Financial Review

Summary: Mortgage brokers are fuming about the government’s move to kill trailing commissions, warning this could cause upfront commissions to rise and put pressure on the cost of loans.

Banking royal commission: Industry reacts to the final report Australian Financial Review

Summary: Bankers and big business leaders have acknowledged the need to improve conduct in the finance industry following the royal commission’s final report, but mortgage brokers and the property sector warned cracking down on brokers could restrict credit flow.

Banking royal commission live: Hayne final report The Australian

Summary: Brokers deeply unhappy

Mixed reaction to the banks report SBS (AAP)

Summary: There has been mixed reaction from stakeholders after the banking royal commission’s scathing final report was handed down.

Royal Banking Commission findings: Mortgage brokers fuming Herald Sun

Summary: The mortgage broking industry is livid they are the biggest scalp of the Royal Commission, with many uncertain if they will survive.

How much would you pay upfront for a mortgage broker? Sydney Morning Herald

Summary: Customers would be forced to pay mortgage brokers fees for their services, under recommendations for a radical shake-up to the broking industry from the royal commission into financial misconduct.

Home loans will cost more owing to royal commission finding, say mortgage brokers The Advertiser

Summary: Australia’s mortgage broking industry has savaged the final report from the banking royal commission, saying a move to dramatically overhaul how brokers are paid will make loans more •expensive by entrenching the power of major lenders.

Banking Royal Commission: What do the findings mean for you? Yahoo Finance

Summary: The final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has been handed down – and it contains a whopping 76 recommendations across three volumes totalling 1,133 pages.

Mortgage brokers are furious about the Hayne royal commission findings and say it could ‘destroy 20,000 small businesses’

Business Insider Australia

Summary: Australia’s mortgage broking industry looks set to be upended if policy follows through on some of the key recommendations of the Hayne royal commission, including a complete ban on trail commissions and, eventually, a ban on all commissions to brokers.

Banking royal commission: Mortgage brokers – how much would you pay up front? F3 Nws

Summary: Meanwhile, the commission said there was not a case for changing responsible lending laws – one of the most closely-watched issues in financial markets.

Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry

The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was presented to the Governor-General on Friday 1 February 2019.

On Monday 4 February 2019 the Hon Josh Frydenberg released the Government’s Response to the Royal Commission.


 

FBAA Broker Marketing Material

In the second-half of 2018, the FBAA engaged an independent research company to survey just how satisfied home loan customers are with FBAA brokers. More than 2,000 borrowers were surveyed, and the results are impressive. And they’re yours to use in the fight against static competition and rising interest rates. New marketing material available monthly.

Download Here


 

Broker Letter to MPs

Download this letter, which we need you to modify and customise and send to your local federal MP and all candidates in your area for the upcoming election.

We must ensure that this issue is front and centre during the election campaign and that our industry secures their support.


 

Petition

Get behind FBAA in the fight against static competition and rising interest rates.

Sign the petition at  https://www.change.org/p/federal-treasurer-josh-frydenberg-save-the-mortgage-broking-industry

National Office

Hours: 8:30am – 5pm Monday to Friday
Phone: 07 3847 8119 Email: info@fbaa.com.au

National Office

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Post: PO BOX 234, Stones Corner, QLD 4120

Finance Brokers Association of Australia Limited

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