Following the release of the 2018 federal budget, FBAA has warned that regulators now have a government-funded war chest to take action against misconduct in financial services.
Executive director of Finance Brokers Association of Australia (FBAA) Peter White has warned the industry to prepare for decisive action from empowered financial regulators, in light of revelations of misconduct identified by the Royal Commission into Misconduct in Banking, Superannuation and Financial Services Industry and given the fact that the budget has set aside more money for the regulators to fight the cause.
“Regulators are being funded for action, and there is no doubt that findings from the royal commission will compel them to act decisively,” Mr White said.
However, the association head noted that he does not believe regulators would introduce drastic broking industry reforms.
“I firmly believe it will not be life-changing,” Mr White added.
“Over recent weeks, revelations around the behaviour of banks have been quite sensational, so I’d suggest much of the focus will be on those matters.”
Further, Mr White noted that he expects the government’s federal budget to have a positive impact on prospective home buyers, and also praised the government’s decision to tighten phoenixing laws and welcomed the crackdown on cash transactions.
“While we always want to see more, any budget that provides confidence gives people more money in their pockets, and doesn’t scare people around issues like superannuation, can only be positive for our industry.
“It’s clearly an election budget, but as long as people feel secure, they will spend and buy property, which is good for the economy.”
[Related: Budget 2018–19 released]
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