the productivity commission

Labor abandons Hayne on mortgage brokers, proposes fee limits

Labor abandons Hayne on mortgage brokers, proposes fee limits

A party source said Labor did not want another pitched battle involving consumers ahead of the election.Already under pressure from self-funded retirees over its policy to end cash refunds for excess franking credits, Labor could ill-afford another campaign claiming that Commissioner Hayne’s recommendation would drive up costs for borrowers, harm competition and strengthen the hand…


Morrison shelves Future Fund super default plan amid union backlash fears

Morrison shelves Future Fund super default plan amid union backlash fears

Several government ministers including Treasurer Josh Frydenberg, Minister for Jobs and Industrial Relations Kelly O’Dwyer and Assistant Treasurer Stuart Robert thought a public default fund option had merit and was worth exploring, sources said.But behind the scenes, Finance Minister Mathias Cormann, who has sided with the financial services industry on past policy fights such as…


Mortgage brokers brace for shake-out as boom turns to bust

Mortgage brokers brace for shake-out as boom turns to bust

The commissions were also costing CBA a lot of money. It estimated it could save almost $200 million over five years if the rest of the market followed its plan to shift the industry to a smaller, flat fee – which would slice the average revenue a broker earned on a loan from around $6000…


‘Right to be cautious’: Philip Lowe, Matt Comyn back a role for mortgage brokers

‘Right to be cautious’: Philip Lowe, Matt Comyn back a role for mortgage brokers

“I think it is really important that the broking industry is certainly not disadvantaged,” Mr Comyn said.Dr Lowe said he strongly agreed that mortgage brokers should operate under a best interest duty, another recommendation of the royal commission, and given they “essentially are providers of financial advice” they should operate under the same regulatory regime.”However,…


APRA defends its housing market intervention

APRA defends its housing market intervention

While the 25-page ‘information paper’ was a response to the Productivity Commission’s call last year for APRA to be more transparent about its decision-making, the regulator used it to rebuff the PC’s harsh critique, which described APRA’s policies as a ‘”blunt intervention with detrimental effects on market competition”.The prudential regulator rejected any suggestion it had…



Future Fund could manage your superannuation

Future Fund could manage your superannuation

The superannuation industry, unions and the Labor Party would vigorously oppose a government default fund taking away money that currently flows into retail and industry funds.But some independent analysts support a government fund to reduce fees, lift returns and reduce conflicts of interest evident in private funds, if appropriate governance safeguards are put in place.Public…