HomeView 2015 Media ReleasesBudget can take positive steps to restore consumer trust in financial system

The Federal Budget is an opportunity for the Government to support the implementation of the Financial System Inquiry (FSI) blueprint to restore confidence and trust for consumers.

The Federal Budget is an opportunity for the Government to support the implementation of the Financial System Inquiry (FSI) blueprint to restore confidence and trust for consumers.

COBA says appropriate funding and resourcing is needed to properly implement the FSI’s recommendations for a more competitive and pro-consumer financial system.

“The Murray Report found that consumer confidence and trust needs rebuilding and a stronger focus on consumer interests is required,” COBA CEO Mark Degotardi said.

“The report warned that high market concentration and increasing vertical integration in some sectors of the financial system could limit competition in the future.

“Mortgage broking is one such area of concern, given that aggregation/broking groups which are totally or substantially owned by the big four banks comprise an estimated 40 per cent of mortgage brokers.

“The FSI found that often consumers don’t understand mortgage brokers’ association with product issuers and how this might limit the products brokers can recommend. The FSI said greater transparency would help to build confidence and trust.

“Consumer groups have this week put the spotlight on some poor behaviour by mortgage brokers. CHOICE, the Consumer Action Law Centre (CALC) and Financial Rights Legal Centre are calling for an investigation of the mortgage broking market, focusing on commissions and disclosure.

“Brokers play an important role in the home loan marketplace and when first home-buyers use a broker they should not have to worry about whether the broker is really on their side.

“CHOICE has uncovered practices where customer interest is coming a distant second. This is further evidence of the importance and urgency of the FSI reform agenda.”

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

Media Release

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Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
Email Mickcontact-arrow

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