Mortgage broker best interests duty
Brokers must act in the consumer's best interests when providing credit assistance.
Who must comply
Mortgage brokers and brokerage businesses.
What triggers it
Providing credit assistance for a credit contract or related insurance.
When due
Each consumer interaction.
Evidence required
Documented loan comparison, recommendation rationale, file notes addressing consumer's objectives and circumstances.
Max penalty
Civil penalties up to $15.65M / 3× benefit / 10% turnover (corporations); consumer remedies
Summary
Section 158LA of the NCCP Act imposes a best interests duty on mortgage brokers. Brokers must act in the consumer's best interests and prioritise the consumer's interests if there is a conflict. ASIC's RG 273 gives guidance — conduct an appropriate range of comparisons, document the reasons for the recommendation, and price-prefer the consumer unless clearly outweighed by other factors.
Enforced by
Source legislation
Industries
Topics
Source: https://asic.gov.au/regulatory-resources/credit/mortgage-brokers/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.