6 February 2019
The findings from the Financial Services Royal Commission are washing through the Australian conscience and indeed the economy.
Whilst the behaviour of the major banks and financial institutions that have been exposed during the Commission cannot be condoned, the effects on some small businesses will be far reaching.
The announcement from Josh Frydenberg, the Australian Federal Treasurer, that all Finance Brokers in Australia will lose their entire trailing commissions from 1 July 2020 places extreme pressure on these small businesses while rewarding the major financial institutions: the very institutions that have been found to behave appallingly to the Australian public.
“We cannot see any sense to this finding,” CEO of CoSBA, Oliver Moon said.
Whilst evidence presented to the Royal Commission found that a number of Finance Brokers had misrepresented their applicant income and financial position, complaints against the sector, continue at less than 3%.
These small businesses are located throughout our cities and regional towns and, in many cases, they are the former bank workers who have left their respective banks after many years, becoming disillusioned with bank practices, and decided to go out and gain the qualifications to become a licenced broker, or broker representative.
“The Combined Small Business Association of Western Australia does not support the Federal Government’s response on this measure against small business finance brokers,” Mr Moon went on to say.