Coronavirus (COVID-19) updates from the Australian Government

Mortgage broker best interests duty and remuneration reforms

This consultation process has now been completed. Submissions available
Date
-
Consultation Type
Exposure Draft

Key Documents

In response to recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Government announced it would introduce a best interests duty for mortgage brokers and reform mortgage broker remuneration. This consultation seeks stakeholder views on the exposure draft Bill, exposure draft Regulations and draft explanatory material that implements these reforms.

The exposure draft Bill requires mortgage brokers to act in the best interests of consumers when providing credit assistance. The bill and regulations make changes to mortgage broker remuneration by: requiring the value of upfront commissions to be linked to the amount drawn down by borrowers instead of the loan amount; banning campaign and volume-based commissions and payments; and capping soft dollar benefits. Furthermore, the regulations limit the period over which commissions can be clawed back from aggregators and mortgage brokers to two years and prohibit the cost of clawbacks being passed on to consumers. Entry into force of the reforms is scheduled for 1 July 2020.

Submissions

40 submissions were received for this consultation.

Aussie Home Loans - pdf 324.72 KB
Combined Industry Forum - pdf 298.41 KB
Connective - docx 99.53 KB
Connie Sapienza - pdf 551.89 KB
CPA Australia - pdf 163.07 KB
Daniel Gold - docx 40.01 KB
Dentons - pdf 302.58 KB
Han-Wei - pdf 110.5 KB
Hussain Mufti - pdf 11.56 KB
Ian Pedley - docx 31.92 KB
James Roy - docx 16.68 KB
Legal Aid QLD - pdf 742.21 KB
Loan Market Group - pdf 350.63 KB
Mark Yeo - pdf 34.54 KB
MoneyItIs - pdf 131.58 KB
Mortgage Choice - pdf 496.25 KB
NAB - pdf 440.65 KB
Paul Lewis - docx 27.62 KB
Paul Olsen - docx 34.11 KB
Ratesetter - pdf 225.25 KB
Robert Porter - pdf 1.32 MB
Simon Chesson - pdf 746.06 KB
Steven Wang - pdf 34.89 KB
Suncorp - pdf 156.75 KB
Westpac - pdf 2.09 MB