ASIC has provided updated information on its current review into remuneration and ownership structures in the Australian mortgage industry.
In a statement yesterday, the MFAA said that ASIC has issued information requests to lenders and 14 aggregator businesses. Requests for information are also being issued to around 50 broker businesses that represent a mix of the largest businesses to some that are reasonably small.
ASIC has only issued requests to businesses that settled at least $10 million of residential mortgages in 2015.
“The feedback so far from my team is that the brokers who they spoke to were generally happy to participate in the review. The industry seems to have done a good job at preparing brokers for this review,” ASIC’s Michael Blyth, who is project managing the review, said.
The MFAA is encouraged that ASIC representatives clarified that their review team is available to provide any assistance that brokers need to provide information requested.
“This is particularly the case for participating smaller broker businesses and ASIC’s review team expects to check-in with those businesses early next week,” it said.
“ASIC believes that its requests to smaller businesses should not unnecessarily disrupt their daily operations and members should contact the review team if questions arise.”
ASIC’s review was instigated by federal minister Kelly O’Dwyer following the outcome of the Financial System Inquiry (FSI). Ms O’Dwyer was appointed as the new Minister for Revenue and Financial Services subsequent to the re-election of the Coalition government earlier this month. Her previous cabinet role was Minister for Small Business.
FBAA spokesperson Peter White said Ms O’Dwyer’s appointment is an excellent outcome for its ongoing discussions with the government on broker-related issues, especially in light of ASIC finalising its report into remuneration structures.
“Stability is the key word and Ms O’Dwyer has always been a terrific listener whenever the FBAA has canvassed crucial issues ranging from broking commissions to clawbacks,” he said.
“I look forward to again meeting with the minister who appreciates and understands the FBAA’s concerns following months of negotiations and meetings.”
ASIC will present the findings of its review to government by the end of the year.
[Related: FBAA to review broker commissions]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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