MIAA broker code disappoints critics

Neither the Australian Securities and Investments Commission nor the Consumer Law Centre think much of the guidelines finally published by the Mortgage Industry Association of Australia and designed to ensure that brokers disclose all commissions. The code requires brokers to tell customers in writing about perks they may receive from banks. The code does not ban the soft-dollar perks and tolerates volume-based bonus commissions. ASIC’s executive director of consumer protection, Greg Tanzer says the code “comes up short of the standards that have been set” for voluntary industry codes. Chris Field from the Consumer Law Centre in Melbourne says it’s “a long wait for little result.”