In response to the six new laws that are set to impact the financial sector from October 2021, we say NBD.
These ASIC enforced reforms will address recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. As far as how these may affect you, our thoughts are...
Reference Checking: Why wouldn't you?
Breach Reporting: Pretty hard for brokers to commit a "breach" serious enough to be reportable, apart from the fact that many are not conducting "proper" compliance testing in their business.
Design and Distribution Obligations: Was never intended to apply to mortgage brokers, besides, BID covers it!
Pressure-Selling of Insurance Add-Ons: What brokers are doing this?!
Internal Dispute Resolution: Really?! Keep an eye on your Facebook page and make sure you address complaints inside 30 days instead of 45. How many brokers get complaints about their services?
Hawking Reforms: Doesn't apply to credit products, but how many of you are cold-calling for your services anyway?
If you have a proper compliance programme in place (i.e., NOT just your pretty files), you will be FINE.
In other words, "Oktoberfest" is a non-event for nearly all of us. Business as usual.