A message from the MFAA CEO, Mike Felton
You may have seen comments in the Australian Financial Review (AFR) this week in an article titled 'Flawed bank remuneration threatens financial stability', that were attributed to Deloitte speaking on the legality of broker remuneration.
We have been in contact with Deloitte to discuss this, and they have advised that they have been misquoted and that the AFR has printed a correction as follows: "Correction: an earlier version of this comment said Karen Den-Toll suggested mortgage broking commissions were non compliant when in fact she said the Royal Commission had suggested this."
Deloitte issued the following statement:
"Deloitte is naturally quite upset and extremely sorry for the inconvenience caused. The reality was that Deloitte spoke about a finding that Rowena Orr QC was asking Commissioner Hayne to make about the mortgage broker remuneration model. She was asking Commissioner Hayne to find the model is potentially in breach of licensing obligations regarding conflicts of interest, and other obligations. Deloitte raised the potential implications of this, and the potential impact on the valuable service provided by brokers and the industry, and called for caution about what the potential knock-on effects could be of such a finding."
The MFAA is satisfied with the response made by Deloitte and the corrections made by the AFR.
The MFAA will be issuing a further general update on its activities in defence of the industry early next week.