2021 submissions

Compensation Scheme of Last Resort Proposal - 12 August and 18 December

In its submissions on this topic, the MFAA made recommendations in relation to cross-subsidisation of sectors, scheme implementation costs and calculation of scheme levies. The MFAA is pleased our recommendation that the Government fund the scheme implementation costs was adopted.

Read the August submission

Read the December submission

Landgate electronic mortgages consultation - 13 July

The MFAA strongly supports the adoption of full electronic conveyancing, including digital signing for real estate transactions in Western Australia.

Read the submission

Breach Reporting (ASIC Regulatory Guide and Draft Regulations) - 8 April and 3 June

The MFAA remains concerned at the potential scope of the regulatory burden of the new regime and has engaged with both Treasury and ASIC throughout the process. The MFAA continues to advocate to expand the role of aggregators within the breach reporting framework including that aggregators are provided with copies of any breach report concerning their brokers and qualified privilege should apply to that disclosure.

Read the April submission

Read the June submission

Review of the Australian Financial Complaints Authority - 25 March

The MFAA supports Treasury’s review and recognises it as a timely opportunity to identify where further enhancements can be made to ensure AFCA is operating efficiently and effectively for all parties. Our recommendations include providing a mechanism to appeal a determination and establish the legitimacy of precedent, and improving consistency in decision-making, to build confidence in the complaint handling system.

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NSW Treasury Property tax proposal Consultation Paper – 15 March

The MFAA generally supports the phasing out of stamp duty and the introduction of a property tax in NSW.

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ASIC CP 335 Consumer remediation: Update to RG 256 - 25 February

MFAA makes submission on ASIC regulatory guide on consumer remediation acknowledging the importance of the notify, investigate, remediate framework and recommending a balanced and scalable approach to consumer remediation.

Read the submission

Senate Economics Legislation Committee enquiry - National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 - 3 February

The MFAA welcomes the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 and considers it will ultimately lead to stronger customer outcomes, as lenders and brokers will have a clearer understanding of their individual responsibilities, including a higher legal duty for brokers. It will also enable a more efficient flow of credit, whilst maintaining customer protections.

Read the submission

CP311 – Internal Dispute Resolution Data Reporting Requirements – 2 February

The MFAA noted that a vast majority of brokers are small businesses and therefore it is vital that the costs associated with additional administration in reporting complaints be considered. The MFAA also recommended that IDR reporting be undertaken in a fair and balanced way.

Read the submission

Consultation on revisions to the new Prudential Standard APS220 Credit Risk Management - 28 January

MFAA recommends that APS220 aligns as much as possible with the Credit Standards so as to create a level playing field between ADI and non-ADI lenders, promote competition, and avoid adding unnecessary confusion for consumers and finance brokers.

Read the submission

CP333 – Reference Checking and Information Sharing - 28 January

The MFAA supports the Government’s commitment to improve reference checking and information sharing protocols in financial institutions (ASIC Protocol). The ASIC Protocol should include standards and processes that is proportionate, flexible and simple to implement. The MFAA also strongly advocates for the expansion of the Protocol beyond reference checking and information sharing between referee licensees and recruiting licensees to include interested parties such as aggregators.

Read the submission

2020 submissions

Consumer Data Right consultations - 10 February, 18 May, 20 July and 29 October

In 2020, the MFAA made a number of submissions in relation to the Consumer Data Right Regime, strongly advocates for access for mortgage brokers in the CDR regime. By facilitating broker access to more comprehensive information on consumers, Open Banking will directly support better credit decision and access to credit by consumers.

Read the February submission

Read the May submission

Read the July submission

Read the October submission

Consultation Paper 327: Implementing the Royal Commission recommendations: Mortgage Brokers and the Best Interests Duty – 20 March

ASIC consults on its draft regulatory guidance on the Mortgage Broker Best Interests Duty, providing ASIC’s views on how mortgage brokers may comply with their obligations at key stages of the credit assistance process. The MFAA worked closely with ASIC to develop ASIC’s regulatory guide.

Read the submission

Consultation Paper 325: Product design and distribution obligations (DDO) – 11 March

The MFAA strongly advocates that as the Best Interest Duty requires a broker to act in the best interests of the consumer, mortgage brokers should be exempt from the distributor requirements under DDO.

Read the submission

ARNECC’s draft Model Participation Rules (Version 6) - 2 March

The MFAA supports the retention of the existing test for Verification of Identify for mortgagors by mortgagees.

Read the submission

Royal Commission Recommendation 1.15 – Enforceable Code provisions - 28 February

The MFAA strongly supports self-regulation, agreeing that self-regulation (in the form of voluntary codes) is critical to industry achieving better outcomes for consumers. There is a place for codes to be made enforceable, however there should be sufficient flexibility in the regime to allow for both voluntary and mandatory codes.

Read the submission

Royal Commission Recommendation 1.6 – Reference Checking, Breach Reporting and Remediation - 28 February

Amongst a number of recommendations, the MFAA strongly advocates for aggregators to be included in reference checking and breach reporting regime.

Read the submission

Royal Commission Recommendation 7.1 – Establishing a Compensation Scheme of Last Resort - 6 February

The MFAA recommended that the funding model for the scheme is based on risk and that sectors that undertake risker activities and are responsible for the bulk of unpaid determinations contribute to the bulk of the funding of the scheme.

Read the submission

2019 submissions

First Home Loan Deposit Scheme - 4 November

The MFAA strongly recommends the inclusion of mortgage brokers in First Home Buyers Scheme, noting that brokers are instrumental in assisting first home buyers through a complex market.

Read the submission

ASIC's RG 209 - 25 October

The MFAA recommends that in the review of RG 209, ASIC clearly distinguishes between the role of the broker and the lender in responsible lending. Brokers undertake a preliminary responsible lending assessment however the final lending decision is made by the lender.

Read the submission

Draft DDO regulations - 11 October

The MFAA makes a submission on the proposed design and distribution obligations.

Read the submission

Draft NCCP Amendment (Mortgage Broker) Bill - 4 October

On 26 August 2019, the Government released the draft National Consumer Credit Protection Amendment (Mortgage Broker) Bill 2019 and draft Regulations. This draft Bill was created in response to recommendations made by the Financial Services (Hayne) Royal Commission.

The MFAA engaged with Treasury directly and as part of the Combined Industry Forum (CIF) throughout the development period of the draft legislation. This exposure draft Bill sought stakeholder views on the draft legislation, the regulations and the explanatory materials around the proposed reforms.

Read the submission

Read the press release

CP 311 – Internal Dispute Resolution: Update to RG 165 - 9 August

In its submission, the MFAA noted brokers represented significantly low EDR complaints, demonstrating that brokers have robust IDR processes to deal with customer complaints. The MFAA also recommended caution on dealing with complaints made through social media.

Read the submission

APRA's APG 223 on Residential Mortgage Lending - 18 June

The MFAA supports changes to APRA’s proposed changes to its guidance on the current serviceability assessment regime as it applies to residential mortgage lending in Australia. A single floor rate across lending products and customers is unsuitable.

Read the submission

ACCC on CDR draft rules - 10 May

The MFAA continues to advocate for mortgage brokers to be provided access to CDR data so that brokers can continue to support competition in the lending market.

Read the submission

AFCA rules amendments - 12 April and 20 June

The MFAA made a submission on several proposed amendments to AFCA Rules, continuing to advocate on behalf of its members for fair, transparent and expeditious complaint resolution.

Read the 12 April submission

Read the 20 June submission

Enforceability of industry codes - 12 April

The MFAA strongly supported self-regulation through industry codes and recommended that Government should only be given the power to prescribe mandatory codes only where there was a material and important regulatory gap to be appropriate filled by a code.

Read the submission

NSW Government e-Certificates of Title discussion paper - 28 February

The MFAA made a submission to the NSW Government in relation to e-Certificates of Title, strongly advocating amongst other things, for national uniformity in e-conveyancing documents and procedures.

Read the submission

2018 submissions

NSW Fair Trading Consultation Paper: Easy and transparent trading - 27 August

The MFAA responded to the NSW Government’s Consultation Paper on Easy and Transparent Trading – Empowering Customers and Small Business. This submission sought to clarify the MFAA’s position in relation to important issues raised in the Paper that were relevant to the industry.

Read the submission

Don’t blame brokers for big bank misconduct - 9 April

The Association responded to commentary from major lenders during Hayne Royal Commission hearings, which sought to place blame for misconduct in home lending on broker behaviour, and push for a fee-for-service for brokers. The Association sought to remind the Commission, regulators and the public of the incentives driving major lenders during the Royal Commission.

Read the press release

MFAA challenges comments on the legality of broker commission - 6 April

The MFAA reacted strongly to an Australian Financial Review column titled “Flawed bank remuneration threatens financial stability” were attributed to a Deloitte spokesperson, who had reportedly questioned the legality of broker remuneration. Deloitte confirmed their spokesperson was misquoted and the AFR printed a correction.

Read the press release

MFAA emphasises key issues to remember about ongoing disruptions - 26 March

Response to public conversation about the industry, and the entire financial services sector, emanating from the activities of the Royal Commission and the Productivity Commission.

Read the press release

Productivity Commission Report undervalues brokers’ value to customers - 7 February

The MFAA responded to disappointing and limited view of the mortgage broking industry presented by the Productivity Commission’s Draft Report on Competition in the Australian Financial System.

Read the submission

Read the press release

Read the Productivity Commission's report

2016 and 2017 submissions

Combined Industry Forum reports to Government on broker remuneration: Strong package of reforms to address key ASIC proposals - 11 December 2017

The Combined Industry Forum (CIF) reported on a significant package of reforms as the mortgage broking industry worked on solutions to issues raised in the Australian Securities and Investment Commission’s (ASIC) Review of Mortgage Broker Remuneration (Rep 516) and the Australian Bankers’ Association (ABA) Retail Banking Remuneration Review (Sedgwick Review).

Read the CIF’s report to Government

Read the joint CIF media release

Industry comes together to promote broker industry benefits - 16 November 2017

Industry associations and leading aggregator groups joined forces to conduct research that supported the value the broker channel delivers for consumers. The industry underwent change following a series of Government reviews, including the Financial System Inquiry and the ASIC Review of Mortgage Broker Remuneration (Rep 516. While ASIC’s Review recognised the role mortgage brokers play, the industry needed to present a strong evidence base outlining brokers’ contribution to the economy.

Read the press release

Senate Standing Committee’s inquiry into Treasury Laws amendment bill - 28 September 2017

The MFAA lodged a submission to the Senate Standing Committee’s Inquiry into Treasury Laws Amendment (Putting Consumers First - Establishment of the Australian Financial Complaints Authority) Bill 2017, otherwise known as the AFCA Bill. The Bill proposed the establishment of a single external dispute resolution (EDR) scheme, the Australian Financial Complaints Authority.

The MFAA had previously expressed that the existing EDR schemes offered its members choice and encouraged competition, which constrained the schemes’ capacity to unilaterally increase charges. In the MFAA’s view, an effective EDR system needs the support of its members, and so reforms that are not supported by scheme members - or are forced upon them – would lead to the degradation of successful mediation principles.

Read the submission

Response to the ASIC review of mortgage broker remuneration (Rep 516) - 30 June 2017

Following extensive member and industry consultation with brokers and broker groups, aggregators and lenders, the MFAA lodged a comprehensive submission to The Treasury, addressing six key issues raised by ASIC in its report.

Read the submission

Read the press release

Review into EDR and complaints framework (Scheme of Last Resort) - 28 June 2017

The MFAA lodged a submission regarding unpaid determinations made by External Dispute Resolution (Ombudsman) schemes and how the relevant complainants could be paid. The majority of unpaid determinations have been made against financial services businesses that have failed or been liquidated.

Complaints against finance brokers form a very small proportion of those lodged with EDR schemes. The Association’s submission therefore advocates that any “Scheme of Last Resort” should be funded proportionally by industry.

Read the submission

Mortgage industry comes together to progress ASIC proposals - 14 June 2017

Representatives from the mortgage industry began a process to ensure that incentives and governance arrangements are aligned with good outcomes for customers, in response to ASIC’s review of Mortgage Broker Remuneration (Rep 516). These industry associations launched the formation of the Combined Industry Forum (CIF).

Read the full statement from the MFAA, Australian Banking Association (ABA), the Finance Brokers Association of Australia (FBAA) and the Customer Owned Banking Association (COBA).

ASIC supervisory cost-recovery levy - 26 May 2017

Following its submission on 19 January 2017, the MFAA lodged a follow-up submission in relation to industry funding of ASIC. Following the Financial System Inquiry, the Government had decided that industry should fund ASIC’s supervisory capabilities, so the objective of the submission was to minimise the impact any levy would have on the continuing viability of finance broking in the Australian market.

Read the submission

Financial Services Panel - 23 May 2017

In response to ASIC’s Consultation Paper 281, the MFAA made a submission to advocate that any panel designed to review individual conduct should involve senior and experienced MFAA members, given that a fundamental objective of any such panel would be that appropriate outcomes occur for both industry participants and consumers.

Read the submission

ASIC Review of Mortgage Broker Remuneration (Rep 516) - 16 March 2017

The MFAA's response to the key policy recommendations made in ASIC’s report on its Review of Mortgage Broker Remuneration.

Read the submission

Exposure draft of the ASIC Supervisory Cost Recovery Levy Bill 2017 and related Bills - 10 March 2017

Further to its January submission on the subject, the MFAA lodged a response to Treasury in relation to draft legislation on industry funding of ASIC’s operations. The response specifically sought clarification on broker business models and the potential for multiple licence fees; effective duplicated fees for those who operate through a company; and how transitional arrangements would apply.

Read the response

Retail Remuneration Review issues paper (Sedgwick Report) - 10 February 2017

The January 2017 “Sedgwick” report focused on the direct channel but included a number of recommendations to generally align direct channel remuneration processes with those of finance brokers. The MFAA responded that the current remuneration practices in place to remunerate finance brokers were fit for purpose and that the remuneration and regulation of “referrers and introducers” needs to be entirely overhauled.

Read the response

ASIC Industry Funding Proposal - 13 January 2017

The MFAA lodged a submission on Treasury’s proposal that industry fund the activities of the Australian Securities & Investments Commission (ASIC) in relation to the credit and credit intermediary sectors.

Read the press release

Read the submission

Review of the Financial System External Dispute Resolution Framework - 7 October 2016

The MFAA made a submission to Treasury’s Review Panel on the current services provided by the Credit and Investments Ombudsman (CIO) and Financial Ombudsman Service (FOS). The submission recommended the current scheme arrangements meet consumer and industry needs effectively and efficiently.

Read the submission