We welcome ASIC releasing strong and clear guidance on this landmark law reform. The mortgage broking industry is now on notice. Mortgage brokers will no longer be able to recommend poor quality loans that line their pockets with commissions. Instead, brokers will be legally required to recommend loans that are in the borrower’s best interests. We strongly support ASIC’s draft guidance on the best interests duty. In particular, we welcome ASIC clearly stating this duty is a principles-based obligation, free from prescriptive safe harbour provisions or carve-outs. This submission recommends a number of areas where the guidance can be strengthened to ensure that brokers are acting in the best interests of borrowers.
