Before and after surveys by MyState and MPA indicate swing against extra regulatory scrutiny, following announcement
Before and after surveys by MyState and MPA indicate swing against extra regulatory scrutiny, following announcement
Brokers are already turning against the banking Royal Commission, surveys by MyState Bank and MPA indicate.
MyState surveyed its national broker network before Prime Minister Malcolm Turnbull announced the Commission last Thursday. Brokers were split on whether a commission was needed: 38% were in favour, whilst 42% were against, the remaining 20% were on the fence.
MPA surveyed brokers and readers in the days after the Commission was announced. As of Tuesday evening, 57% agreed that the Commission was ‘a waste of time and money’, a significant increase on MyState’s figures.
A quarter of respondents to MPA’s survey defended the Royal Commission, whilst 18% were undecided.
Asked by MPA, MFAA CEO Mike Felton refused to take a stance on the Royal Commission, saying that the MFAA that “will cooperate and engage with the process as required.”
FBAA executive director Peter White wrote in MPA today that "the time for saying sorry has passed. It's time for them [the banks] to change their behaviour, be more transparent", including in the area of setting interest rates.
Regulatory fatigue
After a year of intense regulatory scrutiny, brokers’ concern about the Royal Commission comes as little surprise.
Although My State and MPA’s respondents are not necessarily the same group, both sets of respondents showed a significant number of brokers against a Royal Commission.
Reviews and inquiries have already cost brokers time and money: ASIC’s Review of Mortgage Broker Remuneration looked at 1.4m home loans, gathering four years’ worth of data from 14 aggregators and 44 brokerages.
Many aggregators and individual brokers also made lengthy submissions to the Treasury following the publication of the Review.
Whilst brokers have traditionally had little sympathy for banks, the ongoing Combined Industry Forum on broker remuneration has been an example of cooperation between the two groups.
Many brokers would like the industry to regulate itself. MPA surveyed elite brokers applying for our Top 100 Brokers report, with 77% saying that they believe self-regulation could succeed if accompanied by protections for consumers.
Should brokers even care?
It’s possible that the Royal Commission could miss brokers entirely.
Headed by ex-High Court judge Kenneth Hayne, the Commission will commence in February 2018 and report to the Government a year later. As the ABC reported, the 12-month time frame is substantially shorter than for more focused inquiries into trade unions and youth detention.
Liberal politicians have also pushed for the Commission to look at industry super funds and their connection with the trade union movement.
Furthermore, the terms of reference of the Commission also prevent it looking at areas already subject to other inquiries. Whilst this would not exclude broker commissions – an ASIC inquiry – it could exclude issues of vertical integration and competition currently being examined by the Productivity Commission.
Brokers are already turning against the banking Royal Commission, surveys by MyState Bank and MPA indicate.
MyState surveyed its national broker network before Prime Minister Malcolm Turnbull announced the Commission last Thursday. Brokers were split on whether a commission was needed: 38% were in favour, whilst 42% were against, the remaining 20% were on the fence.
MPA surveyed brokers and readers in the days after the Commission was announced. As of Tuesday evening, 57% agreed that the Commission was ‘a waste of time and money’, a significant increase on MyState’s figures.
A quarter of respondents to MPA’s survey defended the Royal Commission, whilst 18% were undecided.
Asked by MPA, MFAA CEO Mike Felton refused to take a stance on the Royal Commission, saying that the MFAA that “will cooperate and engage with the process as required.”
FBAA executive director Peter White wrote in MPA today that "the time for saying sorry has passed. It's time for them [the banks] to change their behaviour, be more transparent", including in the area of setting interest rates.
Regulatory fatigue
After a year of intense regulatory scrutiny, brokers’ concern about the Royal Commission comes as little surprise.
Although My State and MPA’s respondents are not necessarily the same group, both sets of respondents showed a significant number of brokers against a Royal Commission.
Reviews and inquiries have already cost brokers time and money: ASIC’s Review of Mortgage Broker Remuneration looked at 1.4m home loans, gathering four years’ worth of data from 14 aggregators and 44 brokerages.
Many aggregators and individual brokers also made lengthy submissions to the Treasury following the publication of the Review.
Whilst brokers have traditionally had little sympathy for banks, the ongoing Combined Industry Forum on broker remuneration has been an example of cooperation between the two groups.
Many brokers would like the industry to regulate itself. MPA surveyed elite brokers applying for our Top 100 Brokers report, with 77% saying that they believe self-regulation could succeed if accompanied by protections for consumers.
Should brokers even care?
It’s possible that the Royal Commission could miss brokers entirely.
Headed by ex-High Court judge Kenneth Hayne, the Commission will commence in February 2018 and report to the Government a year later. As the ABC reported, the 12-month time frame is substantially shorter than for more focused inquiries into trade unions and youth detention.
Liberal politicians have also pushed for the Commission to look at industry super funds and their connection with the trade union movement.
Furthermore, the terms of reference of the Commission also prevent it looking at areas already subject to other inquiries. Whilst this would not exclude broker commissions – an ASIC inquiry – it could exclude issues of vertical integration and competition currently being examined by the Productivity Commission.
