On Monday (the 4th of February), the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services was released. To say it has rocked the finance sector is an understatement, and the debate continues on and there is still much more to play out. Commentary continues from all parts of the community; Politicians, Banks, Media, talk back radio, friends, acquaintances, as well as my direct clients.

In summary, what seems to be the biggest concern here is what will it cost you, the consumer to access a loan for your needs.

The recommendation is to have all customers and clients directly pay for a Mortgage Brokers Services, out of their own pocket. Presently, under the current remuneration program, the banks pay for the service we provide to you. The recommendations around proposed broker remuneration seems to favour the larger banks, scuttle the smaller banks and lenders (thus removing competition), and hurt every hardworking Australian who want to use our service.

In my opinion, the additional “unintended consequences” of such a drastic change to the remuneration structure will reach much further than the finance sector, it will cross industries and sectors.