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.