Search Results for: ASIC brokers

ASIC consults on draft guidance on the new best interests duty for mortgage brokers

ASIC has today started a four week consultation on draft guidance about the new best interests duty for mortgage brokers. The new obligations were legislated by the Parliament in response to Recommendation 1.2 of the Royal Commission. From 1 July, the obligations will require mortgage brokers to act in the best interests of consumers and … Continue reading “ASIC consults on draft guidance on the new best interests duty for mortgage brokers”

ASIC research highlights the importance of reforms for mortgage brokers and home lending

ASIC has highlighted that some consumers are taking out home loans when cheaper alternatives may well exist. Brokers do not come out that well! Today ASIC has released a report Looking for a mortgage: Consumer experiences and expectations in getting a home loan. As part of this research, ASIC followed over 300 consumers in the … Continue reading “ASIC research highlights the importance of reforms for mortgage brokers and home lending”

ASIC begins shadow shopping brokers

From Australian Broker. ASIC has launched the second phase of its review into the mortgage broking industry by delving into the suitability of brokers’ advice through a mystery shopping exercise. ASIC said this is part of its effort to better understand the home loan purchase process, which goes beyond broker remuneration. “While broker remuneration practices … Continue reading “ASIC begins shadow shopping brokers”

Brokers ‘not recording the outcomes’ of IO discussions: ASIC

From The Adviser. Brokers may be having the appropriate conversation with borrowers on interest-only home loans, the financial services regulator has said, but there has been some “pretty poor record keeping”. The financial services regulator announced last week that it would “shortly” begin reviewing the loan files of brokers with a “high proportion of interest-only … Continue reading “Brokers ‘not recording the outcomes’ of IO discussions: ASIC”

Aggregators to ‘audit’ and number brokers under ASIC regime

From The Adviser. ASIC’s remuneration review could see lenders and aggregators increase their scrutiny of mortgage brokers, who would be identified using a “unique number”. The sixth proposal of ASIC’s review of mortgage broker remuneration states that lenders and aggregators should improve their oversight of brokers and broker businesses. ASIC expects aggregators to actively monitor … Continue reading “Aggregators to ‘audit’ and number brokers under ASIC regime”

Consumer advocates call for further ASIC reviews into brokers

From Mortgage Professional Australia. ASIC’s Review into mortgage broker remuneration does not go far enough, according to consumer advocacy group CHOICE. In a panel hosted by ASIC at their 2017 Annual Forum, CHOICE’s head of campaigns and policy Erin Turner argued, “we can’ just settle for tweaks to the system…I hope this is the first … Continue reading “Consumer advocates call for further ASIC reviews into brokers”

New ASIC funding model a “tax” on brokers, MFAA warns

From Australian Broker. The Mortgage & Finance Association of Australia (MFAA) has expressed concern about a new industry funding model proposed by the Australian Securities & Investments Commission (ASIC). The model, which is set to commence in the second half of 2017, hopes to draw funds for ASIC from parties within the finance industry. “ASIC … Continue reading “New ASIC funding model a “tax” on brokers, MFAA warns”

ASIC on mortgage brokers’ interest only loans

ASIC says the volume of interest only loan approvals rose significantly in the June 2016 quarter. But Australia’s home loans industry has improved its performance over the past year, adopting better ‘responsible lending’ practices, though there is still room for improvement. ASIC has released its report (REP 493) ‘Review of interest-only home loans: Mortgage brokers’ … Continue reading “ASIC on mortgage brokers’ interest only loans”

Brokers to be summoned by ASIC

From Australian Broker. ASIC has revealed it will be serving notices to brokers to provide data, as a part of its fact find for the mortgage broker remuneration review. However, the FBAA is assuring that brokers should not be worried. The FBAA’s Peter White, who met with the ASIC team heading up the review in … Continue reading “Brokers to be summoned by ASIC”

Mortgage brokers: ASIC goes fishing

From The Conversation. The Australian Securities and Investments Commission (ASIC) inquiry into the way mortgage brokers are paid may uncover some isolated shady dealings but the system of remuneration for brokers is already regulated well enough by intense competition. Assistant Treasurer Kelly O’Dwyer announced the inquiry last year in line with recommendations from the Financial … Continue reading “Mortgage brokers: ASIC goes fishing”