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ASIC review of mortgage broker remuneration

16 March 2017 | Invitation to Comment

As part of the Government's response to the Financial System Inquiry (FSI), Improving Australia's Financial System 2015, the Government requested ASIC undertake an industry-wide review of mortgage broker remuneration.

The Review found that the current mortgage broker remuneration and ownership structures create conflicts of interest that may contribute to poor consumer outcomes.

The Review outlines a number of proposals for industry aimed at improving consumer outcomes, including:

  • improving the standard commission model for mortgage brokers;
  • moving away from bonus commissions and soft-dollar benefits;
  • increasing the disclosure of mortgage broker ownership structures; and
  • improving the oversight of mortgage brokers by lenders and aggregators.

The proposals outlined in this paper are intended to elicit specific and focused feedback, and should not be viewed as a statement of the Government's final policy position.

The Government invites all interested parties to make a submission on the proposals outlined in this paper.

Making a Submission

Interested parties are invited to comment on the review.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 30 June 2017

Address written submissions to:

Manager
Financial Services Unit
Financial System Division
The Treasury
Langton Crescent
PARKES ACT 2600

For enquiries please call 02 6263 3626.

Key Documents

  • Infographic: What ASIC did 289KB
  • Infographic: What ASIC found 385KB
  • ASIC Review of Broker Remuneration report 3MB
Ref Num: {C41FFB35-36EF-4436-81B8-0C83858F4A94}
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