CommBank backs brokers best interests duty

Commonwealth Bank chief executive, Matt Comyn has agreed that mortgage brokers should be subject to the same client best interest duty as financial planners.

Under questioning during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Comyn sought to defend the commissions-based remuneration of mortgage brokers but struggled to specify what on-going services those brokers provided to justify receiving ongoing trails.

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Counsel assisting the Royal Commission, Rowena Orr QC asked Comyn whether it was his understanding that mortgage brokers were viewed as representing the interests of borrowers but then struggled to define what ongoing services they provided to those borrower/clients.

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Asked whether there were any on-going services he was aware of, Comyn responded: “I would need to check, but I do not believe so”.

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When Orr asked Comyn whether he believed the law should be changed to require mortgage brokers to act in the best interests of clients, the Commonwealth Bank chairman said he believed that should happen.

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When asked whether the Commonwealth Bank believed mortgage brokers should be subject to a best interests duty, he answered “yes”.

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