In response to ASIC’s Report 516: Review of mortgage broker remuneration and the third-party recommendations of the Sedgwick Review, and following consultations with Government, the mortgage broking industry established the Combined Industry Forum (CIF) to drive better customer outcomes through improved governance and remuneration practices in mortgage broking.
The CIF consists of representatives from bank and non-bank lenders, aggregators and brokers, consumer groups (represented through CHOICE), the Australian Bankers’ Association (ABA), the Mortgage & Finance Association of Australia (MFAA), the Finance Brokers Association of Australia (FBAA), the Customer Owned Banking Association (COBA) and the Australian Finance Industry Association (AFIA).
The CIF first met on 9 June 2017 and had, up until its first response submission to ASIC, operated through monthly meetings and five specialist working streams, focussed on developing a package of changes to governance, reporting and remuneration in mortgage broking. These reforms are in response to the six proposals of the ASIC Report and the specific recommendations of the Sedgwick Review relating to the remuneration of aggregators and mortgage brokers aimed at improving customer outcomes and driving the sustainability of the mortgage broking industry.
The work of the CIF has been led by 7 guiding principles:
In responding to proposed changes to remuneration and governance practices in the mortgage industry, the CIF, including industry associations, brokers, aggregators and lenders will:
1) Support a co-regulatory approach and, to the extent possible, support industry self-regulation;
2) Have better consumer outcomes at the centre of its approach;
3) Ensure appropriate transparency of process for industry participants, government and consumers;
4) Promote competition at all levels of the industry;
5) Not aim to change the structure of the industry or unfairly disadvantage any part of the value chain;
6) Promote simple and achievable solutions; and
7) Seek solutions that can be applied in all jurisdictions and that take account of the needs of metropolitan, regional and country areas.
On behalf of the CIF, the MFAA is pleased to provide a copy of the CIF Report and related CIF Media Release which can be viewed through the links below:
|CIF Progress Report|
|Combined Industry Report|
|CIF Media Release|
The reform package contained in the CIF Report is the result of unprecedented engagement between industry bodies, lenders, mortgage brokers and their representatives, aggregators, introducers, and consumer groups, and follows consultation with regulators and Federal Government.
The CIF Report outlines the mortgage broking industry’s commitment to implement a package of reforms to improve customer outcomes in mortgage broking and demonstrates a genuine commitment for change.
MFAA members can also watch a series of videos from the CIF which explain the package of reforms here.