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The federal Labor Opposition has endorsed existing consumer protections but would consider new regulation if it saw “widespread negative outcomes” in mortgage broking.
Bernie Ripoll, Shadow Minister for Financial Services and Superannuation, said the Labor Party couldn’t see any reason to add to the regulation it introduced while in government.
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“Labor will always be prepared to act to strengthen consumer protections, however Labor does not believe in burdening business with unnecessary and excessive regulation,” he told The Adviser.
“Labor believes that the banking and credit reforms we put in place got the balance right for consumers and the industry.
“However, if there is evidence of widespread negative outcomes occurring in mortgage broking, then Labor would consider any proposals that strengthen consumer protections.”
Mr Ripoll said Labor only introduced its FOFA reforms in response to “clear and widespread evidence” that conflicted remuneration was leading to inappropriate financial advice.
Meanwhile, MFAA chief executive Phil Naylor also said the current regulation was striking an appropriate balance.
“A lot of work went on, with the government working with industry groups such as us to make sure that the regulation was fit for purpose and we believe that it is,” he told The Adviser.
“The evidence is that there has been very few instances of consumer–broker issues arising since the NCCP came into operation.
“In fact there were very few before that, but there have been even less since.”
[Related: An industry to be proud of]
