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The head of the FBAA has revealed that the Combined Industry Forum’s response to ASIC’s review into remuneration has been submitted to government for consideration.
The forum is composed of the Australian Bankers’ Association (ABA), Finance Brokers Association of Australia (FBAA), the Mortgage and Finance Association of Australia (MFAA), the Customer Owned Banking Association (COBA) and the Australian Finance Industry Association (AFIA), unnamed “representatives from bank and non-bank lenders, aggregators and brokers” and consumer groups.
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The group, which was brought together by the ABA, aims to provide a coherent response to ASIC’s investigation of broker remuneration.
While details of the initial response to Treasury have not yet been released, it is believed that the response does not support any radical changes to broker remuneration.
Speaking at the FBAA 2017 National Industry Conference on Friday (24 November), executive director Peter White commented: “We’ve played [a role] in the Combined Industry Forum, as initiated by the ABA. We’ve taken into consideration what came out of [the] Sedgwick review and we took no consideration of UBS and Rice Warner.
“The report will be submitted to government on Monday. It is an industry response, on behalf of us all, on how the thought processes and considerations to ASIC’s six proposals on broker remuneration should play out. We hope that the minister [Minister for Revenue and Financial Services] takes that on board and we all enjoy the years ahead without any great disturbance.”
The Minister for Revenue and Financial Services, Kelly O’Dwyer, has previously stated that the government would utilise industry feedback, including that from the CIF, in its response to the remuneration review, which is expected by the end of the year and with a final response coming in the new year.
Mr White later told The Adviser that he believes the Combined Industry Forum would continue to exist and work on co-regulation in the future.
He said: “The Combined Industry Forum could be together for years. We are putting forward our proposals to Treasury, our response to the six proposals that ASIC outlined in its review into broker remuneration, and we will have to continue to put in place the recommendations from the minister, whatever that decision may be.
“The forum will continue until it has completed its journey. The intent is, if all goes well and all goes according to plan, then we will keep it going for a long time.”
As well as working in partnership with different sectors on this report, the association, Mr White noted, had also partnered with the Mortgage and Finance Association of Australia (MFAA) — along with AFG, Astute, Aussie, Choice, Connective, FAST, Loan Market, Mortgage Choice, NMB, PLAN and Smartline — to commission Deloitte to create a snapshot of the driving factors that have led to the continuing growth of the broker channel.
Mr White told delegates at the FBAA conference: “You should have all received an email to complete a survey for this. It is one piece of many pieces within that puzzle that are being constructed at the moment, and I ask everyone to do it.
“This report is being constructed to paint the right picture of our industry… it is something that needs to be completed and we need everyone’s input in this particular part of the puzzle while we work on the other pieces behind the scenes that will combine to bring that into place.”
When the survey was released last week, Joe Sirianni, chairman of the Project Steering Committee and director of Smartline Home Loans, commented: “We have identified that there is a need for up-to-date evidence explaining the growth in the use of brokers. The industry can support the impending report by taking the time to fill out the survey and adding value to this important initiative nationally.
“Brokers often ask how they can do more to support the industry, so the MBIG hopes brokers will give the time to assist in this important report. The survey will be distributed to the industry through the MFAA, FBAA and aggregators. It will remain open until close of business, December 3rd.”
[Related: Broking industry asked to take survey on value proposition]
