Flavell backs ASIC review of broker commissions

“We actively support any reforms aimed at maintaining or increasing consumer protections,” he said.

“At Mortgage Choice, we have always actively encouraged Australians to ask their broker how they are paid. We have also gone beyond legal requirements and operate under a paid-the-same philosophy, which ensures our brokers are paid the same rate of commission regardless of which lender the customer chooses.”

The government also agreed with FSI recommendations to increase educational and ethical standards for financial advisers.

“Anything that is done to help improve the overall level of professionalism in this industry should be applauded,” Mr Flavell said.

“That said, we are keen to read the detail on these changes and see how they may impact those operating in the industry without degree qualification.”

Furthermore, Mr Flavell said he agreed with the government’s decision to increase power given to ASIC.

Under the new legislation the body will be able to amend or ban harmful financial products where there is a risk of consumer detriment.

“It makes sense to give ASIC greater power to ensure customers are protected from potentially harmful products,” Mr Flavell said.

“So long as ASIC’s intervention does not stifle innovation, then we support the idea. ASIC is, after all, the industry watchdog and they should be given the necessary powers to govern this industry appropriately.”

[Related: NAB to work with regulator on broker remuneration structures]