Brokers fear reputational damage following Royal Commission

Royal Commission brokers MyState Bank

image
image
expand image

More than 65 per cent of mortgage brokers said they were seriously or moderately concerned that the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry would negatively impact the reputation of their industry.

Thirty-seven per cent of brokers were in support of greater industry scrutiny by the Australian Securities and Investments Commission (ASIC) as the regulator turned its focus to lending standards in the industry.

Seventeen per cent said that while the greater focus would be unfortunate, it was self-inflicted “as there were rogue mortgage brokers in the past that damaged the industry’s reputation.”

Twenty-eight per cent said the scrutiny was just a “political exercise designed to benefit non-broker interests” while 35 per cent said they were undecided as to whether reputations would be tarnished.

Forty-two per cent of brokers said the recent draft Productivity Commission report was unlikely to lead to the replacement of broker commissions with a fee-for-service mode, while 23 per cent thought it was a strong possibility.

MyState Limited Group executive broker distribution, Huw Bough, said the survey results showed that while brokers held concerns for their reputation, they remained supportive of improving the industry standards.

“The Royal Commission has attracted a lot of attention recently, but it must also be acknowledged that well before the commission began, representatives of Australia’s mortgage broking industry prepared a landmark reform package to improve customer outcomes and confidence in mortgage broking,” he said.

The reform package involved six principles to ensure improved standards of conduct and culture, while preserving competition in mortgage broking.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 4 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 3 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 6 hours ago