It has been reported that the Government will not review its decision in 2019 to not prohibit trail commissions on new loans by mortgage brokers. Background.
Despite the Financial Services Royal Commission recommendation that lenders be prohibited from paying trail commission to mortgage brokers, the ban on credit providers paying conflicted remuneration to mortgage brokers is limited to section 158NE of the National Credit Act, Credit Regulation 28VL and 28VB. The existing ban does not extend to trail commissions.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
