What is Best Interest Duty?
In 2013, ASIC introduced Best Interest Obligations for financial advisors - a set of statutory requirements that established a mandatory standard for all financial advisors to act in the best interest of consumers.
Following the Banking Royal Commission, this standard has been extended to include Mortgage Brokers. Under this new standard, a mortgage broker is obligated to act in the best interest of their consumer, and prioritise the consumer’s interest when providing credit assistance. This is known as Best Interest Duty (BID).
Specifically for Mortgage Brokers, the conflict priority rule outlines that if a conflict of interest arises, the mortgage broker is required to give the consumers interest’s full priority. If a conflict of interest is present and the consumers' interests cannot be prioritised, the broker must not provide credit assistance.
When does it come into effect?
Mortgage brokers are currently following the obligations set out within Best Interest Duty, with the new laws coming into effect from 1st January 2021.
What this will mean for you
The team at Partners Wealth Group has always operated to the highest standard with clients' best interests at heart – well before it was mandated. However, rest assured our team has embraced our new obligations to ensure we continue to provide exceptional service.
If your client is looking for a home loan and are unsure who to trust, contact a lending advisor from Partners Wealth Group today on 1800 333 143 to see how we can assist with getting your approval in place.