Home / Uncategorized / Mortgage agents and small banks were saved from the repression of the Royal Banking Commission

Mortgage agents and small banks were saved from the repression of the Royal Banking Commission

A source noted comments under Mr. Frydenberg's radar in a speech last week, in which the treasurer said that the improvement of the financial system "must be achieved without inadvertently strengthening the position of the holders or unduly restricting the flow of credit." or other vital financial resources, services that Australians need and the economy depends. "

Assistant Treasurer Stuart Robert also expressed support for the important role of mortgage brokers in brokering homebuyer loans.

The government will give its initial response shortly after the report is received.

The mortgage brokerage industry has been in suspense after the compensation structure of the sector was exposed during the real commission for encouraging bad behavior and contributing to the writing of lower quality loans.

During the royal commission, a letter from former Commonwealth Bank of Australia chairman Ian Narev revealed that banks knew that the structure that rewarded brokers selling larger loans was flawed, but there was nothing he could do.

The presentations made to the royal commission by brokerage houses included extraordinary examples of brokers including fraud, forgery, assault, sexual harassment, customer identity theft, and more.

Mr. Frydenberg has strongly indicated that the introduction of new laws will not be the preferred option of the government, but that the stricter application of existing laws by more aggressive regulators is part of the solution to penalize and dissuade consumers.

The treasurer has noted in particular the interim findings of Commissioner Hayne that "most of the time, the condemned conduct was now contrary to the law" and that the misconduct was not sufficiently punished or was not punished at all.

The shadow treasurer, Chris Bowen, said this week that a Labor government will seek to fulfill all the recommendations of the royal commission and that both sides of the policy will need a "very, very, very good reason" not to adopt any results.

"Your default position should be if the royal commission recommends it, it will be done," Bowen said Tuesday.

He also hopes that the final report that will be submitted next week, and subsequent policy responses, will ease the credit crunch for homebuyers and small businesses by giving more certainty to demanding lenders about how the lending laws responsible will work and will be applied by the regulators.

Mr. Frydenberg said in his speech on Tuesday that the central point of the government's thinking to respond will be "restoring confidence in the financial system by offering better results for consumers, even in retirement."

"This requires a culture of compliance and accountability, regulators that are fit for purpose and a recognition by the industry that people should put themselves before profits," said Frydenberg at the Sydney Institute.

Source link

Leave a Reply

Your email address will not be published.