Members of the mortgage broking and banking industries have formed six working groups to help prepare policy solutions for government on broker remuneration.
The mortgage industry forum is composed of the Australian Bankers’ Association (ABA), Finance Brokers Association of Australia (FBAA), the Mortgage and Finance Association of Australia (MFAA), the Customer Owned Banking Association (COBA) and the Australian Finance Industry Association (AFIA), unnamed "representatives from bank and non-bank lenders, aggregators and brokers" and, most recently, some consumer groups.
The forum is reportedly “making strong progress developing the industry’s response to ASIC’s report on mortgage broker remuneration”.
Since establishing the framework to develop its response, the forum has now revealed that it has formed six new working groups to focus on issues including “commission models, enhanced governance and greater transparency”.
These working groups are reportedly “meeting regularly in a tight schedule to work through options for the industry response” and will report back to the forum on a monthly basis.
In an update, the forum also outlined that it is “documenting recent industry improvements to practice, assessing steps the industry can take now to immediately address some of ASIC’s proposals, and preparing policy solutions for the Federal Government to consider as part of its response to ASIC’s review”.
While the Treasury’s consultation on the ASIC report has now closed, the industry working group will be providing its initial response to Treasury, ASIC and the industry in November 2017.
A spokesperson for the combined industry forum said: “The forum has agreed with Minister O’Dwyer’s office and Treasury to provide a report in November. It is intended to be the first of three reports to government, with the second and third reports being provided early next year.”
They continued: “The forum is focused on prioritising the interests of consumers and we are pleased to have consumer representatives now participating in the forum.
“The forum will continue to work together with stakeholders over the next few months and looks forward to presenting proposed solutions to the government in November.”
The group also welcomed the statement made last week by the Minister for Revenue and Financial Services, Kelly O’Dwyer, that government would utilise industry feedback, including that from the forum, in its response to the remuneration review.
Annie Kane is the editor of The Adviser magazine, Australia’s leading magazine for mortgage brokers. As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also the host of the Elite Broker podcast and regulator contributor to the Mortgage Business Uncut podcast.
Before joining The Adviser team at Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.
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