Aussie advisers welcome trail ban delay

Mike Felton

Mike Felton, CEO of the MFAA, hailed the Australian government's U-turn, and decision to review trail in three years' time. Trail had been due to be banned from next July, but Felton believes the industry's voice is being heard.

Felton said the decision "reflects the fact that the case for the removal of mortgage broker trail commission has not been made, nor has it been demonstrated that existing trail arrangements lead to poor customer outcomes."

The development will be welcomed by New Zealand advisers, many of which expected an impact on their own trail payments due to the Royal Commission. About 44% of respondents to TMM's recent annual survey said they were unsure whether trail would be abolished completely.

The Australian government made several comments in support of the mortgage advice sector on Tuesday, and Felton believes the Aussie government is placing more emphasis on consumer outcomes, following the Hayne report. He added: "“The Government should be congratulated for following this advice and protecting customer interests and mortgage broker viability.