Mortgage rate price signalling legislation introduced
The Federal Government has introduced legislation to Parliament to prevent price signalling between banks regarding mortgage rate increases.
Deputy Prime Minister and Treasurer, Wayne Swan (pictured), said that the Australian Competition and Consumer Commission (ACCC) had advised the Government of strong evidence that banks have been signalling increases in mortgage rates to their competitors. He said this behaviour undermined competition and pushed interest rates higher.
“Obviously the big banks won’t welcome tougher regulation, but we’re going to give the ACCC the powers it needs to protect the interests of Australian consumers,” Swan stated.
The reform is part of the Competitive and Sustainable Banking System package, which includes credit card reform. Swan said legislation regarding credit cards was also introduced to Parliament yesterday, and the key reforms require that credit card take the following steps: allocate repayments to higher interest debts first; refrain from charging over-limit fees unless consumers specifically agree that their account can go over the limit; implement a ban on unsolicited ‘tick a box’ credit offers unless the consumer has agreed to receive them; and tell consumers the implications of only making minimum repayments to their credit card accounts.
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
