Australian advisers told clawbacks are “unnecessary”
The comments came in a speech by Daniel Crennan QC, who's the former deputy chairman of regulator the Australian Securities & Investments Commission (ASIC).
Crennan said he did not believe clawbacks should be imposed since mortgage brokers had a “best interests duties” obligation in place.
This best interests duty was imposed by law last year and meant advisers in Australia had to prioritise several things when dealing with clients.
These included costs such as fees and interest rates which would be imposed on a customer. However, non-cost considerations also had to be taken into account, such as the general benefit to a person from following a certain course of action.
Crennan argued the requirement that advisers do the best they can for their clients meant they should not be penalised with a clawback from a bank later on.
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