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Vivienne Kelly
The Australian Securities and Investments Commission (ASIC) has said it is not unfairly targeting brokers, amid criticisms that the watchdog needs to focus more on lenders.
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Speaking to The Adviser, ASIC commissioner Peter Kell said ASIC was committed to holding all parties to account.
“We look at all those involved in the issue where we have concerns – it doesn’t matter which part of the supply chain they’re in. So we look at the lenders, we look at the brokers,” he said.
“You have to remember, there are a lot of brokers and representatives out there, so part of this is simply a fact of the number of individuals and entities that we’re dealing with.
“At the end of the day, we will take action against anyone, wherever they sit in the supply chain, if they breach the law.”
Mr Kell added that the amendment to the National Consumer Credit Protection Act that removed brokers’ ability to refer to themselves as "independent" was not an attack on their profession, but instead a necessary precaution.
“It is important to understand that this issue around independence is applied consistently across the financial services sector.
“If your remuneration structure involves a conflict of interest because you’re getting payments from a provider – especially if they’re volume-based requirements such as commissions – well then, by the legal definition, you’re not truly independent. And I think that’s how the community would understand it as well.”
