the latest from the Hayne Inquiry: The mortgage broking industry has responded to Commonwealth Bank CEO Matt Comyn’s "anti-competitive" expression of support for a ‘fees-for-service’ model.
The Finance Brokers Association of Australia (FBAA) and the Mortgage and Finance Broker’s Association of Australia (MFAA) have criticised comments made by Commonwealth Bank CEO Matt Comyn in his appearance before the financial services royal commission.
Mr Comyn noted his support for a Netherlands-style fees-for-service model, whereby consumers are charged a fee for mortgage advice
The CBA CEO also revealed that CBA had sought to introduce a “flat fee” commission-based model in January 2018, before choosing not to go ahead with the change in fear that the rest of the sector would not follow suit.
In response to Mr Comyn’s remarks, managing director of the FBAA Peter White said: “It was a great disappointment to see that CBA have a very loose grip on the realities of mortgage broking and the markets here and overseas. That said it’s CBA so is expected.”
Mr White also pointed to FBAA research into the ‘consumer pays’ model adopted in the Netherlands, stating that it has not delivered good consumer outcomes.
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