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Brokers have been given fresh information about ASIC’s remuneration review as the regulator prepares to submit its much anticipated findings to government.
As part of its continuing series of meetings with the regulator, the MFAA met with Michael Saadat, ASIC’s senior executive leader responsible for consumer credit, and his team on Thursday, July 7 to discuss the progress of the current inquiry and to present concerns expressed by the broker community. The meeting identified a series of key statements that will assist the industry to understand developments. In the meeting the following key information was shared:
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• The latest stage of the inquiry has been predominantly focused on the collection of data from lenders with an extensive request for information. Aggregators have also been approached and have already provided, or will shortly provide requested data. The amount of information that will be requested from brokers or broker businesses will be significantly smaller than the information requests for lenders and aggregators.
• ASIC confirmed that it is not yet at the stage of making contact with brokers directly, but will be doing so around the end of July. The regulator will advise the MFAA when this will commence. ASIC will be contacting a relatively small number of brokers or broker businesses (less than 100) to complete information requests.
• ASIC wanted to assure brokers that when they are contacted there will be various points at which the broker, or broker business, will be able to receive assistance from ASIC in providing the requested information.
• ASIC confirmed that the review will cover the remuneration arrangements of all parts of the value distribution chain and will include consideration of vertical integration and any impact these arrangements may have on the quality of consumer outcomes.
• The meeting confirmed that the review was requested by the Minister for Small Business Kelly O'Dwyer and was not based on any predetermined perception of the industry.
• ASIC and the MFAA have agreed to review the use of various communication channels offered by the Association including webinars, e-News, MFAA On Air video messages and the 5,500 plus members on LinkedIn to deliver updated information to brokers.
• The MFAA has offered to promote ASIC’s four-year Corporate Plan which highlights its priorities and approach to assist a better understanding of the regulator’s strategy for the future.
[Related: ASIC review: A broker's perspective]
