The Finance Brokers Association of Australia (FBAA) has revealed that the Australian Securities and Investments Commission (ASIC) has given finance brokers an early Christmas present with confirmation their credit representative licence fees have been reduced as a reward for the sector’s professionalism.
The financial services regulator has reduced the cost to act as a credit representative for brokers from $104 to just $16.48 annually due to the decreased cost of enforcement.
FBAA managing director Peter White said the confirmation of reduced fees means brokers are being rewarded for doing the right thing by their clients.
“ASIC operates on a cost recovery method which means they only charge fees that cover the costs of enforcing to the industry.”
The total cost of legal enforcements against mortgage brokers started at $15.6 million dropping to under $9.1 million mid-year before being revised this month to $5.74 million, nearly a third of the original cost.
Mr White said the turnaround for brokers comes as the royal commission, ACCC, ASIC and others have found banks are failing borrowers amid a culture of bad behaviours and a lack of transparency.
“While banks have been exposed for their poor practices, brokers are being recognised for being best of breed. The professionalism of the industry and the ability of brokers to deal with any poor behaviour swiftly is paying dividends.
“The standard of our brokers and our own monitoring practices have improved markedly and that is why ASIC has revised its fee schedule. We hope they will continue to be able to reduce the fees as we improve what we do and demand the high-standards that borrowers expect and deserve,” Mr White said.