CommBank backs brokers best interests duty


Commonwealth Bank chief executive, Matt Comyn has agreed that mortgage brokers should be subject to the same client best interest duty as financial planners.
Under questioning during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Comyn sought to defend the commissions-based remuneration of mortgage brokers but struggled to specify what on-going services those brokers provided to justify receiving ongoing trails.
if(/Android|webOS|iPhone|iPad|iPod|BlackBerry|IEMobile|Opera Mini/i.test(navigator.userAgent)){
document.addEventListener('DOMContentLoaded',
function() {
var typesArray = {
desktop: [43],
tablet: [43],
mobile: [43],
};
var zoneArray = [287902];
var zoneDivId = '#momentum-azk98074-zoneunit';
changePlacements(true, zoneDivId, typesArray, zoneArray, null);
})
}
.topsuperbanner_default{
width:300px;
height:605px;
background: #efefef;
}
#momentum-azk98074-zoneunit {
width: fit-content;
margin: 0 auto 5px;
}
#momentum-azk98074-zoneunit img {
max-width: 100%;
height: auto;
}
.topsuperbanner_default:empty{display:none;}
Counsel assisting the Royal Commission, Rowena Orr QC asked Comyn whether it was his understanding that mortgage brokers were viewed as representing the interests of borrowers but then struggled to define what ongoing services they provided to those borrower/clients.
Related News:
Advice firm penalised $11m over 'cookie cutter' advice
Client rebalancing leads to Insignia outflows
Asked whether there were any on-going services he was aware of, Comyn responded: “I would need to check, but I do not believe so”.
document.addEventListener('DOMContentLoaded',
function() {
var typesArray = {
desktop: [0],
tablet: [43],
mobile: [43],
};
var zoneArray = [316693];
var zoneDivId = '#momentum-azk98072-zoneunit';
changePlacements(1230436, 10860, true, zoneDivId, typesArray, zoneArray, null, 'momentum-azk98072-zoneunit');
})
.mobile_superbanner_default{
width:300px;
height:605px;
background: #efefef;
}
#momentum-azk98072-zoneunit {
width: fit-content;
margin: 0 auto 5px;
}
#momentum-azk98072-zoneunit img {
max-width: 100%;
height: auto;
}
.mobile_superbanner_default:empty{
display: none;
}
When Orr asked Comyn whether he believed the law should be changed to require mortgage brokers to act in the best interests of clients, the Commonwealth Bank chairman said he believed that should happen.
When asked whether the Commonwealth Bank believed mortgage brokers should be subject to a best interests duty, he answered “yes”.
document.addEventListener('DOMContentLoaded',
function() {
var typesArray = {
desktop: [0],
tablet: [5],
mobile: [5],
};
var zoneArray = [282282];
var zoneDivId = '#momentum-azk56700-zoneunit';
changePlacements(1230436, 10860, true, zoneDivId, typesArray, zoneArray, null, 'momentum-azk56700-zoneunit');
})
#momentum-azk56700-zoneunit {
width: fit-content;
margin: 0 auto 5px;
}
#momentum-azk56700-zoneunit img {
max-width: 100%;
height: auto;
}
#momentum-azk56700-zoneunit:empty{
display: none;
}
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.