 |
|
|
|
 |
News
|
|
|
 |
Editorial: Much ado, and then nothing
Mike Taylor
The life of the current Federal Parliament has run to an end and, once again, mortgage brokers and a substantial slice of the Australian lending industry remain outside the strictures of the Financial Services Reform Act and the Corporations Act.
It is a sad fact of life that while much ado was made of the recommendations of the House of Representatives economics committee report on the Australian home loan industry, few commentators bothered to reflect upon the fact that the Government has had no fewer than two terms to address the core issue – the jurisdictional anomaly that leaves mortgage brokers largely unfettered by regulation.
The committee’s recommendations that mortgage brokers need to be licensed in the same way as planners is therefore very welcome, but nonetheless simply represents the statement of something that has been obvious for at least six years.
Money Management
has frequently pointed to the anomalies that inevitably flow from a situation wherein mortgage brokers can provide advice relating to one of the largest financial commitments an Australian family is likely to make, yet they do not have to hold an Australian Financial Services licence to do so.
This publication has also frequently pointed to the fact that there has been an increasing level of cross-pollination between the financial planning and mortgage broking sectors.
Many financial advisers will no doubt smile ruefully at the thought that while they have been subject to regulatory extremes such as shadow shopping exercises, their counterparts in mortgage brokerages have been left largely unfettered by regulatory oversight.
That said, it is worth noting that there has been strong support within the mortgage broking sector itself for the industry to be subject to the same regulatory requirements as financial planning.
The bottom line is that the Parliamentary committee report has served to reinforce the ongoing, unsustainable regulatory anomaly at a time when the realities of a looming election mean the Government can, once again, do nothing to address the situation.
Given the largely bipartisan support for the broad findings of the Parliamentary committee, it would seem sensible and, indeed, logical for the main political parties to address the recommendations within their financial services policy announcements during this election campaign.
Whichever party wins, government should ensure that regulation of the Australian mortgage industry is a legislative priority early on in the new Parliament.
–
Mike Taylor
4 October 2007
print this article...
Related articles by company
|
|
|
Home |
Advertising |
Disclaimer |
Contact Us |
About Us |
Feedback |
Privacy Policy
Copyright © Reed Business Information. All material on this site is subject to copyright. All rights reserved.
No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
|
|
|
|
