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The chairman of the Combined Industry Forum (CIF) has praised the industry for working together for the “best interest of the industry”.
The CIF released a report this week detailing the progress made in a package of reforms it set out last year.
These recommended reforms included changes to the standard commission model, a new regime for controlling and disclosing non-monetary benefits, and improved public reporting and disclosure requirements.
The report by the CIF, released 28 August, showed that volume-based bonus commissions, campaign-based commissions and other volume-based bonus payments had ended in December 2017.
Chairman Anthony Waldron acknowledged that the reforms were not easy ones to make, but that it has been a “real positive” to see how the industry is working towards creating better customer outcomes.
He added, “I don’t think any of it is easy, this is about an industry adapting and the industry has taken on itself to evolve. The whole component here is what is the best outcome for the customer at the end of this?
“This is a package of reforms off the back of ASIC so we’re really using that review as a template.
“The core of what ASIC’s doing is to get a good customer outcome and that’s what we need to focus on.
“That’s a really positive step forward and we think that mortgage brokers are getting access to affordable for lending and these changes are about setting new standards and shaping the industry for the future.”
As part of the package the CIF want to define what a good customer outcome means and measure it going forward so brokers can continue to build trust with their customers.
He said it was a “big step up” from the NCCP’s requirements, adding, “This is about raising the standard for the industry”.
Most reforms are expected to be completed by December 2018.
Waldron said, “The report is saying yes we believe the parties involved are on track. It’s an ongoing process and we’ll continue to support brokers through these changes.”
