Legislation passes to impose mortgage broker best interest duty

7 February 2020
| By Mike |
image
image
expand image

The Royal Commission-based legislation changing mortgage broker commission arrangements and imposing a client best interest duty have passed the Parliament.

The Treasurer, Josh Frydenberg, said that the changes were contained in the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2019 Measures) Bill 2019.

The legislation covers the Royal Commission recommendation that mortgage brokers be required to act in the best interests of consumers when providing consumer credit assistance.

As well, it also covers off the Royal Commissions recommended reforms to mortgage broker remuneration by requiring the value of upfront commissions to be linked to the amount drawn down by the borrowers instead of the loan amount, alongside the banning of campaign and volume-based commissions and payments and capping soft dollar benefits.

The changes bring the regulatory environment for mortgage brokers more broadly into line with those of financial advisers.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days 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....

1 day 4 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago