In late February 2016, ASIC released a discussion paper
titled "Broker Remuneration Review – Scoping Discussion
Paper" to assist in scoping out the parameters of its
forthcoming review of mortgage broker remuneration
ASIC is currently consulting with industry on the scope of the
This ASIC initiative follows a request by the Commonwealth
Government in November 2015 for ASIC to review the mortgage broking
market and determine the effect that current remuneration
structures have on the quality of consumer outcomes.
ASIC proposes the review will comprise 3 main elements:
overview of the home lending market
and consumer outcomes, including whether those outcomes are
currently influenced by remuneration structures.
The purpose of this alert is not to canvass or speculate on the
scope of the review or its final outcome but to alert readers to
the proposed timelines for completion of the review and the report
The proposed timelines are currently:
Deadline for submissions on scope of review – 11 March
ASIC determines scope of review – late March 2016;
ASIC requests data from industry (March to April 2016);
Data collected analysed (April to August 2016); and
Report to Government (at this time expected to be in the period
between September to December 2016).
The review of mortgage broker remuneration structures follows on
from reforms in recent years to remuneration structures for
financial services products and more recently the life insurance
On life insurance, see media release dated 11th February 2016
issued by the Minister for Small Business and Assistant Treasurer
the Hon Kelly O'Dwyer announcing introduction of legislation
into Parliament to give effect to changes to life insurance
Any change to the remuneration structure for finance broking has
the potential to reshape that industry in Australia, as has
happened with other industry sectors when their remuneration
structures have been changed.
It is important to follow this review closely as it progresses
during 2016 and beyond.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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