Login
ISCOVER
NAB Broker general manager Steve Kane has revealed some of the specific areas that the corporate watchdog will be investigating when it begins its review of the third-party channel.
Mr Kane believes ASIC’s review into the industry will ensure transparency is upheld between brokers and their customers.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“ASIC in particular is going to focus on responsible lending and NCCP,” he said.
“It’s making sure that the consumer is not getting a poorer outcome than they would have otherwise if they used a third-party referral source, and that the compliance factors, the record keeping, the ability to be able to produce when something does go wrong [and] the fact that you’ve got proper mechanisms in place when customer complaints come through.”
Mr Kane added that the review will determine which brokers and brokerages are really pulling their weight in the industry.
“It’s really going to be that that’s going to drive the regulators [on] whether that particular broker or broking group is actually doing the right thing by their customers,” he said.
However, Mr Kane said he believes the review will be delayed for a while yet.
“All of those things ASIC is looking at at this stage, and they’ve obviously targeted [brokers] now with the review around the remuneration and ownership structures, but I noticed them saying that they’ll get that review underway by the end of 2016,” he said.
“We haven’t even finished 2015 so I’m thinking it’s going to take a while before we get anything out of that.”
Mr Kane’s comments come after Assistant Treasurer Kelly O’Dwyer confirmed to The Adviser last week that she had written to ASIC requesting that it undertake the review to help determine the effect of current remuneration structures on consumer outcomes.
[Related: Flavell backs ASIC broking inquiry]
