ASIC responds to Treasurer’s home loan initiative

Tony D'Aloisio

The Australian Securities and Investments Commission has responded to the Federal Treasurer’s initiatives around switching fees on home loans, announcing the launch of a review to examine exit and entry fees on home loans.

Chairman of ASIC Tony D’Aloisio said the review would begin immediately and will focus on making information that is clear and comparable on the fees available to the market.

“We have already begun collecting data on them and will, as part of our consultation, announce a tight timetable to complete the review,” he said.

According to D’Aloisio, ASIC will consult with industry and consumer groups to examine the level of exit and entry fees on home loans, the industry rationale for charging them, how they work in practice and the current disclosure of these fees.

“We will also look at the exit and entry fees on home loans in other countries so we can see how Australia compares.”

D’Aloisio said ASIC was also enhancing its consumer complaints mechanisms on banking products and services, to ensure consumers are directed to the right regulator or disputes scheme.

“Our 1300 telephone number for complaints will ensure there is a single point of entry for complaints,” he said.

“By analysing the complaints we receive, we will be able to better understand the types and level of consumer concerns on banking issues.”