When royal commissioner Kenneth Hayne released his report exposing a toxic sales culture in banking and financial services, Patrick Conaghan distinguished himself by calling for "a bipartisan approach to implement all of the recommendations made." By contrast Rob Oakeshott put up a statement on his website ('Oakeshott meets with Coffs Harbour Mortgage Brokers') rubbishing Hayne's recommendations targeting mortgage broking.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The first of these (Recommendation 1.2) calls for the law to be amended so that mortgage brokers must act in the best interests of the borrower. Recommendation 1.3 says the borrower, not the lender, should pay the broker a fee, thus ending the practice of lenders paying ongoing trail commissions to brokers for the life of the loan. An earlier report by the Productivity Commission likewise found that these commissions have the effect of aligning the broker's interests with those of the lender, rather than those of the borrower. The Productivity Commission report states, "mortgage brokers who once revitalised price competition and revolutionised product delivery have become part of the banking establishment."
In addition to opposing these key recommendations from the royal commission, Rob Oakeshott agitated for penalty rate cuts when he was last in parliament. It has been reported that retail and hospitality workers missed out on $80 million in penalty rates this Easter period. A worthy member of parliament wouldn't kick workers in the guts and resist reforming the banking system. This doesn't bode well considering Rob Oakeshott stands a real chance of holding the balance of power.
Ryan Mainey
Bellimbopinni
