The FBAA has called for “perspective” on broker remuneration amid “unprecedented, unnecessary and crazy” opinions by some ill-informed commentators on the industry.
FBAA executive director Peter White has criticised the number of probes by authorities – including the Productivity Commission, ACCC and Royal Commission – as they `”are falling over each other on their quest for profile.” He also said ASIC itself has only recently conducted a comprehensive review
“I have never seen such craziness around our sector, and this is leading to reactionary comments rather than considered approaches,” he said in a statement.
White pointed out the industry has already been undergoing a process of reform directly with regulators for the past few years to achieve better consumer outcomes.
White believes “there really is no problem” – It’s just that “these multiple inquiries and statutory bodies have to justify their existence and fat pay packets by kicking someone, and at the moment it’s finance brokers.”
“Let’s keep in mind that consumers are not complaining; we know they are happy with the current system because they are voting with their feet and overwhelmingly choosing brokers,” White added.
White suggests that brokers avoid reacting to quotes coming from bank bosses because their words can easily be edited and used out of context.
He recognizes that banks have raised some eyebrows, but he also points out that their Royal Commission submissions, except for one bank, show support for the existing system. And that doesn’t surprise him because he believes “it’s better for banks, brokers, and borrowers.”
White hopes to hear less speculative reporting, and more rational and informed discussion moving forward.