the adviser logo

One Nation rallies behind brokers, backs trail

by Charbel Kadib6 minute read
Pauline Hanson

Commissioner Kenneth Hayne’s recommendation to ban upfront and trailing commissions paid to brokers would “decimate” the industry, One Nation leader Pauline Hanson has said.

Federal Senator and leader of political party One Nation, Pauline Hanson, has criticised Commissioner Kenneth Hayne’s call for a borrower-pays remuneration model in the mortgage industry and backed the preservation of upfront and trailing commissions.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Ms Hanson said that the proposed ban on upfront and trailing commissions paid to brokers, as outlined in the banking royal commission’s final report, has “jeopardised the survival of more than 17,000 small businesses across Australia”.

“That’s the number of mortgage brokers providing loans to mums and dads, who rely on upfront and trailing commissions paid by the lender to survive,” Ms Hanson said. “Take those commissions away and make the borrower pay and you will decimate the industry.”


She added: “That’s tens of thousands of jobs, millions of dollars in tax revenue and much less competition for the big banks.”

The Senate crossbencher also warned that the ban on commission-based remuneration could limit the competitive aspirations of smaller lenders that have “shifted into regional areas to partially fill the void left by the big banks”.

“Those small lenders, including regional banks and credit unions, rely on mortgage brokers to reach customers,” she said.

Ms Hanson also said the royal commission’s recommendations relating to home lending contained “several flaws” and accused Commissioner Hayne of showing “little knowledge of how the mortgage market works”.

The Senator went on to highlight the services that mortgage brokers provide, including their role in providing customers with choice, arranging bespoke loans, negotiating lower interest rates, handling compliance procedures, and providing post-settlement services.

Senator Hanson added that a customer’s access to information in the mortgage market would be limited if the industry is undermined by Commissioner Hayne’s proposals.

“Knowing what is going on in the market is very important if the customer wants the best deal. Which bank has the best deal for fixed-rate loans this week? What lender is looking for long-term home loans? Who wants to lend to agri-businesses? Mortgage brokers know what’s going on in the market. Consumers don’t,” she said.

“I can’t imagine someone walking into Commonwealth Bank and being refused a loan, only to hear the customer service representative suggest they go down the road to ANZ.”

Ms Hanson urged both the government and opposition to reconsider their policy approaches and called for greater consultation with the broking industry.

“[Commissioner] Hayne has these recommendations wrong. The government and Labor are blindly walking into a huge trap by abolishing trailing commissions,” she said.

“Bill Shorten and Scott Morrison need to consult with the industry before making these sweeping changes or they risk enormous fallout.”

Ms Hanson’s crossbench Greens colleagues, however, have expressed support for the full implementation of Commissioner Hayne’s 76 recommendations and reiterated their support for “ending bank commissions for mortgage brokers”.

[Related: Government and opposition battle it out on broker front]

One Nation rallies behind brokers, backs trail
pauline hanson ta
TheAdviser logo
pauline hanson ta

Charbel Kadib

Charbel Kadib


Charbel Kadib is the news editor on The Adviser and Mortgage Business.


You need to be a member to post comments. Register for free today


daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

asic ta 2

ASIC seeks ‘common-sense solutions’ to breach reporting

The Australian Securities & Investments Commission (ASIC) has committed to “improving” the operation of the...

andrew mills homestart ta htfetw

HomeStart drops graduate loan deposit to 2%

HomeStart Finance, a non-bank lender backed by the South Australian state government, has lowered the deposit hurdle...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more