Yesterday, the Final Report from the Royal Commission into the Banking, Superannuation & Financial Services Industry was issued, and it included 76 recommendations to address the misconduct issues across the broader industry, of which 3 related directly to mortgage broking.
The overarching goal with these proposed recommendations is meant to ensure the client’s best interests come first in their dealings with a service provider, a value we have prided ourselves on delivering in full, since we began.
Though ‘client best interests’ might become legislated, rest assured we have always sought to deliver these outcomes for you.
What do the proposed changes mean for you?
One proposed change is for a ‘consumer pay’ model, meaning clients will need to pay their broker for the provision of the service. We believe this change could well lead to less competition, less choice for consumers, and possibly, higher interest rates.
Another significant recommendation is to remove all trailing commissions, which are typically used to enable us to cover our operating expenses and providing ongoing service and advice. This change could also affect our service delivery model, which we don’t believe is aligned to client’s best interests.
For right now, nothing changes in respect of the service levels, advice and outcomes that you would expect of us. We will continue to support you in working toward and achieving your own home ownership and financial goals.
In the months ahead, if any of the proposed mortgage broking recommendations are passed through parliament, you will remain informed at all times, particularly if these changes affect how our service can be offered to you.
If you have specific questions regarding the Royal Commission or you would like to find out more about your options regarding finance, please call me directly on 0417 512 306 or your personal Morbanx Broker (Full contact details here).
Managing Director and Founder