The release of the final report of the Hayne Royal Commission was met with dismay and disbelief within the broker community. We are obviously very disappointed with some of the outcomes. However, if I’m looking for a silver lining (which isn’t easy), we at least have some clarity and can start to plan our next steps.
While the Government made it clear that they intend to implement all of the recommendations, including banning trail commissions from 1 July 2020, they did acknowledge the risks of further strengthening the hand of the big banks.
Further to this, the Government recognised the role of brokers in fostering competition by delaying the recommendation to remove upfront commissions and moving to a customer-pays structure. Instead, in three years time, a review will be undertaken of the implications of these actions on consumers and a final decision made.
The real fight begins now.
The Royal Commission was an investigation into misconduct, not an examination of the worth of the broker industry or the benefits we bring to the Australian market. Brokers currently hold a 59% market share of residential mortgages and our customers are highly satisfied, reflecting the price and variety of lending available to Australians delivered by the competition brokers bring to the market.
Now, more than ever, is the time to maintain our focus on providing outstanding service and continuing to fulfil our role as a central element in a competitive Australian financial services market. Our customers will continue to come to us for our market knowledge and unbiased advice, and a satisfied and supportive customer base is our best defence.
At an industry level, I will continue to educate government, bureaucrats and consumer groups about the broker market, the outstanding service we offer to consumers, and the access to advice we bring to everyday Australians.
I do this with the strong support of an experienced leadership team, the backing of the Liberty Group and a network of great brokers. nMB is in a strong position to navigate this changing landscape and, along with the rest of the industry, bring a powerful voice to the promotion of the great work brokers do every day.