Keeping you safe.
REVISED: Wednesday 3, February 2021
Based on your feedback on the recent changes to the Game Plan and MyCRM in regards to conflicts, we’ve revised the original changes and have implemented some short and long term fixes.
What's been changed?
- We've temporarily removed the comparison of the commissions from the Game Plan. As identified, there are some issues with this section which we’ll be fixing in the next couple of months. In the meantime, we’ll be removing this from the Game Plan to avoid any confusion for you or your clients.
- The disclaimer in the ‘mortgage broker commission’ section of the Game Plan has been updated to advise that the figures are an estimate and don’t reflect the exact amount that you'll receive.
- The ‘higher commissions’ question has been permanently removed from the Conflicts of Interest Declarations in the application in MyCRM. Based on your feedback, this question added time to your process, plus was creating a duplication as you’re already required to advise why the product is in the client’s best interests and the commissions don’t impact this.
Forming part of Best Interests Duty, as a separate obligation, the Conflict Priority Rule advises that mortgage brokers have a legal obligation to prioritise the needs of their clients above their own (or any of their related parties) in response to any conflicts that may exist when providing credit assistance.
To ensure you’re keeping safe, we’ve made changes to MyCRM, providing you with guidance on how to disclose and resolve conflicts. We've also made changes to the Game Plan to reflect any identified conflicts as well as provide a clearer disclosure to customers on fees and commissions.
Previously in MyCRM, there was one generic question on conflicts of interest that you had to answer and if any conflicts were identified you had to provide details. These details were not disclosed to the customer.
Now, we have introduced a Conflicts of Interest Declarations section with questions relating to specific conflict scenarios that may arise. These are:
- Tiered servicing: if you select yes, hint text will appear alongside the Turnaround Times field of the Lender and Product Rationale section where you’ll be required to provide further information about the conflict and how the tiered servicing arrangement is in your customer’s best interests.
- Third party referrals: if you select yes, again you won’t need to take any further action. The details of the referral will be displayed in the new referral commission section of the Game Plan.
- Business ownership structure: if you select yes, you will need to enter the specific ownership structure of your business. This is supported by static text which will appear in the broker details section of the Game Plan.
- Other conflicts: if there are any other conflicts, you must select yes and provide details. The detail you provide will appear in the ‘Other’ notes section of the recommendation rationale.
Remember – you must always act in your customer’s best interests and ensure that any conflicts that arise are resolved in your customer’s favour.