Regulator's new funding model no concern for brokers: FBAA

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The FBAA has reassured brokers they will not be disadvantaged by planned changes to ASIC’s funding model.

Having attended a private dinner with Assistant Treasurer Kelly O’Dwyer last week, FBAA chief executive Peter White said the one-on-one discussion with the federal minister was extremely positive.

“I can’t say too much at this stage, but I am told the proposed changes to the structure and tiering of fees for funding ASIC will not have an adverse effect on brokers themselves, and I was heartened to hear the minister say they have listened to our concerns and reassessed this issue,” he said.

“More will be known about the new ASIC funding model, but we will just have to await the ASIC capability review currently being finalised by Treasury.”

Mr White also said that the broking industry’s concerns over the ongoing ASIC review into remuneration will not fall on deaf ears.

“This is all about understanding on both sides, but from our end, it is vital we tell them the regulations and practices we have in place to eliminate any need for potential changes to commission or more stringent regulations,” he said.

Furthermore, Mr White said the issue of LMI disclosure in brokers’ personalised key fact sheets was also discussed, as well as the FBAA’s submission to the review of flex commissions impacting the motor vehicle industry.

“It was an extremely beneficial evening with open and clear dialogue between the parties,” he concluded.

[Related: FBAA provides update on broker commissions review]

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