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Funding for regulators as part of the federal budget means brokers should brace themselves for action, according to the Finance Brokers Association of Australia (FBAA).
Both the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) were allocated funds specifically towards the banking Royal Commission. They have been marked for $4.7million and $2.7million respectively.
FBAA executive director Peter White said while the impact on brokers is unlikely to be major, the industry must be prepared for some changes.
He added, “Regulators are being funded for action and there is no doubt that findings from the royal commission will compel them to act decisively."
While he isn’t sure how much action will be directed towards the broking sector, he said, “I firmly believe it will not be life-changing.
“Over recent weeks, revelations around the behaviour of banks have been quite sensational, so I’d suggest much of the focus will be on those matters.”
White also said the budget impact overall should be mainly positive for homebuyers. He added, “While we always want to see more, any budget that provides confidence, gives people more money in their pockets and doesn’t scare people around issues like superannuation, can only be positive for our industry.”
He said the tightening of phoenixing laws and crackdown on cash economies are also positive measures, “It’s clearly an election budget, but as long as people feel secure they will spend and buy property, which is good for the economy.”
