ASIC warns of stronger focus on mortgage brokers
The Australian Securities & Investments Commission (ASIC) has put mortgage broking at the top of a list of the regulator’s priorities in credit.
At a keynote address at Credit Law 2025 conference, ASIC commissioner Alan Kirkland warned that mortgage broking is among its “key areas of focus”, and that the watchdog was actively reviewing brokers’ compliance.
Kirkland noted that home lending was the largest area of consumer credit in Australia and said that as the role of mortgage brokers continues to grow, ASIC will be taking a “closer interest in the conduct of brokers and aggregators”.
“While the sector attracts relatively few consumer complaints, we are conscious that misconduct by brokers will not always be obvious to their customers,” he said.
The commissioner flagged that ASIC had been engaging for some months with several large mortgage aggregators in relation to brokers’ compliance with their best interests obligations.
ASIC has gathered data on brokers’ product recommendation behaviour, loan flows, remuneration, and consumer complaints.
“In the coming months we will be focusing further on brokers’ complaints handling, and audit and compliance practices,” Kirkland added.
“We will review brokers’ compliance with their internal dispute resolution obligations – and seek to understand how brokers identify and respond to complaints that flag potential concerns about compliance with the best interests duty.”
Westpac to scrap trail commissions in NZ
Westpac New Zealand has confirmed that it will scrap trail commissions for mortgage advisers.
In comments to The Adviser, Westpac New Zealand confirmed that the bank will move to a single upfront commission structure for its mortgage adviser network, with the new structure to automatically apply to all new home loan settlements from 1 June 2026.
Mortgage advisers will receive 0.90 per cent of the value of new loans, replacing the current combination of a 0.60 per cent upfront payment and trail commissions of 0.20 per cent per annum.
The major will also introduce a 0.30 per cent top-up payment for new loans settled between 15 October 2025 and 31 May 2026.
Westpac New Zealand national manager of third-party channels, Chris Poledniok, told The Adviser that the top-up payment would effectively increase the total upfront commission to 0.90 per cent during this period.
“As part of this change we’ll also put more resources into improving turnaround times and investing in digital enhancements, to help provide a market leading experience for advisers and their customers,” he said.
“The new structure is designed to provide highly competitive pricing, align with evolving industry standards, drive better outcomes for customers, and ensure we’re well positioned to support advisers into the future.”
Matos outlines ANZ’s new strategy
Australia and New Zealand Banking Group (ANZ) CEO Nuno Matos has outlined plans to cut the major’s cost base, while expanding mortgage and business lending.
In an update to investors, Matos said ANZ would “materially invest in and train our own mortgage sales force”, with plans to add 50 per cent more mortgage lenders inside its branches.
The changes will likely grow returns from ANZ’s proprietary lending arm and could reduce reliance on mortgage brokers.
ANZ also plans to increase the number of commercial and private bankers by almost 50 per cent, with a new Commercial Bankers Academy to help develop talent.
The bank detailed five immediate priorities, including embedding its new leadership team, accelerating the integration of Suncorp Bank, delivering ANZ Plus to all retail and small-business customers, simplifying operations by reducing duplication, and ending initiatives misaligned with its strategic direction.
ANZ noted that changes would deliver $800 million in gross cost savings in 2026.
“Today is an exciting day in the 197-year history of ANZ,” Matos said.
“Under these changes we will unlock our potential to win the preference of customers, shareholders and the community.
“Under our new strategy, customers are at the centre of everything we do – whether it’s improving their experiences, offering them leading technologies and platforms, or keeping them safe.”
AFG takes minority stake in asset finance brokerage
Aggregation group Australian Finance Group Limited (AFG) has made another equity investment in a broking business as part of its Broker Investments program, acquiring a minority stake in Brisbane-based asset finance brokerage Network Finance.
Established in 1995, Network Finance operates out of offices in Brisbane suburbs Coorparoo and Beenleigh and has been a member of the aggregation group since 2008.
Under the agreement, AFG will acquire a 40 per cent stake in Network Finance, with the brokerage joining Melbourne’s Empower Wealth Group, Perth’s Lifespan Mortgage Services, and Sydney’s Loan Path Finance.
As such, the investment in Network Finance is the fourth the ASX-listed aggregator has made under its Broker Investments program (which was launched last year), but its first in an asset finance brokerage.
Craig Titmus, Network Finance’s managing director, said AFG’s investment would open new opportunities and accelerate the brokerage’s growth trajectory.
“We’ve earned our reputation in asset finance, but leveraging off our loyal customer base we see enormous potential in residential and commercial lending,” he said.
“Partnering with AFG, an ASX-listed company, gives us access to the capital and expertise needed to unlock that growth.
“With AFG’s backing, we’re positioned to scale rapidly while continuing to deliver the personalised service our customers value.”
