From July, mortgage brokers will have to comply with current responsible lending obligations and a new best interests duty. Responsible lending and best interests are not the same thing. According to the information memorandum accompanying the bill that was passed…
Mortgage broker best interests duty bill introduced
The Government has taken action on its promise to introduce a best interests duty for mortgage brokers, tabling a bill in Parliament last week that addresses conflicted remuneration and requires mortgage brokers to act in the best interest of consumers.…
Concern that mortgage broker best interest exclusions ‘will not have the intended effect’
Wording in the draft mortgage broker best interest bill intended to limit the effect of the new law to mortgage brokers and mortgage intermediaries “will not have the intended effect” according to a leading industry commentator, and needs to be…
Mortgage broker best interest bill under fire
The government’s plan to impose a best interest duty on mortgage brokers has been criticised for being selective in its application, with inconsistent exclusions. A draft bill issued for consultation also bans conflicted remuneration. In a commentary on the bill,…
Mortgage broker best interest duty bill released
The government has opted for a principles-based approach to its new mortgage broker best interest duty, allowing brokers and other mortgage intermediaries to respond to the circumstances they are dealing with. Treasury released an exposure draft of National Consumer Credit…
Frydenberg backtracks on mortgage broker commissions
Treasurer Josh Frydenberg announced yesterday that the Government would not proceed with its plan to prohibit trail commissions on broker mortgage sales and has deferred any decision on the controversial issue for three years. The Hayne Royal Commission recommended that…
What Hayne’s vision means for the future of financial services
Post-Hayne, the long-term future of the financial services industry looks more professional, more independent and more strictly regulated, with more power in the hands consumers. If the Royal Commission’s recommendations are implemented, the industry will have to adjust to tougher…