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FBAA to review broker commissions

by Reporter7 minute read

The FBAA is set to conduct a review into the remuneration structures for mortgage brokers overseas to prove that the commissions paid in Australia are fair.

With the results of ASIC’s review into broker commissions not due until the end of this year, the FBAA’s Peter White said the association will review remuneration structures in the UK, New Zealand and the US, while further evidence will be gathered on Canada’s market.

“This research will clearly show that our commission structure is of an international standard, creates the right consumer outcomes, is commercially fair, and appropriate for the extensive work done pre- and post-settlement for the bank and the client by the broker,” he said.

“This will form part of our arsenal and strengthens our industry position that the current commission structure is fair and equitable and in no need of a radical overhaul.”

Mr White said the FBAA will continue to communicate its stance on broker commissions to the federal government.

[Related: A broker’s perspective of the ASIC review]