Joint Submission: Implementing the Royal Commission recommendations: Mortgage brokers and the best interests duty
A joint consumer submission from Consumer Credit Legal Service (WA), CHOICE,Consumer Action Law Centre, Financial Counselling Australia and Financial Rights Legal Centre.
It’s time to make mortgage brokers act in the best interests of their customers.
As the Banking Royal Commission revealed, simply telling a financial services institution or intermediary to prioritise the best interests of a consumer has often failed. What’s more, harmful conflicts of interest such as upfront and trail commissions, that skew the quality of advice, remain in the industry.
The continued existence of commissions means there will be an ever-present temptation for brokers to prioritise their own interests and break the law. In order for these laws to be effective, ASIC must provide clear guidance and be a tough and emboldened regulator that prosecutes breaches of this new law.
Read the full submission [here]2020-03-25 - Joint consumer submission to ASIC - CP 327 Implementing the Royal Commission recommendations_ Mortgage brokers and the best interests duty