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The FBAA has welcomed the government’s support for increased disclosure of ownership structures within the financial services sector.
FBAA chief executive Peter White said disclosure will bring positive rewards to the industry and assist brokers in better educating clients on product offerings.
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In response to the FSI, Treasury has supported Recommendation 40, which would require mortgage brokers and financial advisers to disclose ownership structures, stating it will work towards legislation to ensure better transparency.
Mr White said that most brokers support disclosure and believe it can build trust and long-term client relationships.
He said that the more brokers continue to transparently do the right thing, the better it will be for the industry as a whole.
Mr White pointed out that the industry is different to how it was 20 years ago: “Now customers can easily do an online search and find out information, so by being upfront you can save yourself a lot of lost time and progress the transaction with your client more readily.”
The FBAA chief said that although there will be some opposition from brokers, some can actually use it to their advantage.
“You can really sell this point – if you’re owned by a major bank, you are actually dealing with a firm which is indisputably regarded and has major strength behind it.”
[Related: NAB to work with regulator on broker remuneration structures]
