By Eleanore D. Sanchez
The Finance Brokers Association of Australia (FBAA) is in a lobby to keep the current brokers’ commission structure in place, according to reports.
FBAA representative Peter White recently conferred with Minister for Finance and Revenue Services Kelly O’Dwyer to present their arguments for following the status quo with respect to the commission structure for home mortgage brokers.
White committed to providing a global research document supporting the brokers’ case by the end of the year. The supporting document details the compensation structure for brokers in six overseas markets.
“The data collected proves that our commission environment is globally sound and fundamentally competitive. At no other time has the broking industry seen a collection of data and other information which comprehensively argues the case for retaining the current broking commission model,” White said.
The Australian Securities and Investments Commission (ASIC) initiated an inquiry into the compensation structure of mortgage brokers in May to investigate its effects on the cost of home mortgages in the country.
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