The Australian Labor Party (ALP) has made a major policy backflip, resulting in it formally rejecting one of the royal commission's strongest recommendations - despite claiming before the report was released that in principle all 76 recommendations "word-for-word" would be adopted.
Mortgage Broker Loan Market CEO Sam White said Labor's proposals were a good step in the right direction. “Last night, finally, common sense prevailed. Labor expressed support an end to the disastrous customer-pays model recommended by the Royal Commission,” Mr White said.
The move has been welcomed by mortgage brokers, but discussions still continue over trail commissions.
Here are some articles with more information:
- https://www.theaustralian.com.au/national-affairs/labors-likely-backflip-on-mortgage-brokers-earns-ridicule-from-treasurer/news-story/6898ea79d836d3a068687660c7473cb8www.theaustralian.com.au/national-affairs/labors-likely-backflip-on-mortgage-brokers-earns-ridicule-from-treasurer/news-story/6898ea79d836d3a068687660c7473cb8
- https://www.theadviser.com.au/breaking-news/38828-labor-to-propose-standardised-upfront-feewww.theadviser.com.au/breaking-news/38828-labor-to-propose-standardised-upfront-fee
- https://www.afr.com/personal-finance/banking/labor-rejects-royal-commission-via-mortgage-broker-backflip-20190222-h1bkzjwww.afr.com/personal-finance/banking/labor-rejects-royal-commission-via-mortgage-broker-backflip-20190222-h1bkzj