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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: Coalition dumps Hayne royal commission recommendations. Bankers use stolen loot to stop Consumer Protection

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Alarm as Coalition dumps Hayne royal commission recommendations

The Australian 12:00am March 25, 2019

Ben Butler, Michael Roddan


Consumer groups have warned that the prospect of lasting reform of the finance sector is under threat after the government ­walked away from recommendations of the banking royal commission, raising fears that heavy campaigning from the cashed-up industry might result in further backdowns.

The warning comes ahead of a federal election and after the Coalition government abandoned a commitment to end trailing commissions for mortgage brokers and regulators decided not to press for a better deal for small business borrowers.

In a further industry-friendly move, Treasurer Josh Frydenberg on Friday snubbed calls by regulators to ban property investing by self-managed super funds even though the commission heard that more than 90 per cent of advice given to set up an SMSF broke the law.

With the royal commission no longer dominating headlines, the Coalition has been buoyed in recent weeks by internal polling showing voter concerns about the banking and financial sector have eased, with Australians now more likely to worry about population growth, migration and reform of the aged care industry.

However, Labor remains committed to fully implementing all but one of royal commissioner Kenneth Hayne’s 76 recommendations.

Mr Frydenberg defended the government’s record, saying the Morrison government was “taking action on all 76 recommendations contained within the royal commission’s final report and in a number of important areas is going further”.

He said mortgage brokers were “critically important for competition and delivering better consumer outcomes in the mortgage market” — a proposition largely rejected by Mr Hayne, who in his final report said research showed this was doubtful.

Mr Frydenberg also said changes to the small business definition in the Australian Banking Association code proposed by Mr Hayne, which included boosting the size of loans that attract the more generous terms to $5m, were a matter for the ABA “and its members to resolve, noting that some members have already moved to adopt the higher $5m definition”.

Gerard Brody, the chief executive of the Consumer Action Law Centre — which played a key role in the royal commission — said he was concerned by the government’s actions and warned they would embolden other industry players pushing to weaken recommendations affecting them.

“Particularly the walking back on the mortgage brokers, but also the one about small business,” he said.

“It sends a signal to every other vested interest in the financial industry that the government is prepared to renege on its commitments about the royal commission.”

His remarks echoed those made earlier this month by Choice chief executive Alan Kirkland, who pointed to Australian Securities & Investments Commission research finding that consumers don’t get a better deal by going to a mortgage broker.

“In the face of all this history and clear evidence of a market riddled with conflicts, Canberra has capitulated to lobbyists once again,” Mr Kirkland said.

Mr Brody said he was worried that the government might even bow to a campaign by some financial advisers who want to keep receiving lucrative trailing com­missions.

New trailing commissions for advisers were banned as part of Future of Financial Advice reforms brought in by Labor in 2013, but under a “grandfathering” provision they were allowed to continue receiving the payments for advice they had already given.

Early this month, acting without the approval of his board, Peter Johnston, the executive director of the Association of Independently Owned Financial Professionals, flagged a challenge to Mr Hayne’s proposal to end trailing commissions on constitutional grounds.

The move, which would claim that the end of trails would amount to an unlawful confiscation of property, is also supported by another adviser group, the Association of Financial Advisers.

However, in his final report last month Mr Hayne scoffed at the idea. “It is time to ignore the ghostly apparition of constitutional challenge conjured forth by those who, for their own financial advantage, oppose change that will free advice about, or recommendation of, financial products from the influence of the adviser’s personal financial advantage,” he said.

Mr Brody said CALC backed the view of Mr Hayne, a former High Court judge, over those of industry participants.

“What’s happening here is that financial advisers are seeing their wealth, that they’ve done not much work for, disappearing,” he said.

“It’s pretty clear that Australians are opposed to fees for no service and that’s really what grandfathered commissions are.”


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