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The Australian Banking system has had a serious shake-up and in this episode hear how it affects you and where it leaves the Australian economy. Louise Bedford shares on how to say just the right thing to offer your fellow trader’s support.
Louise Bedford – Mindpower
You know that TV show ‘Billions’?
Louise loves it and she draws inspiration from it to demonstrate how to encourage and support a fellow trader with carefully used phrases.
Hear how to say just the right thing to offer your fellow trader’s support.
Jonathan Barratt
The Royal Banking Commission’s final report was made public.
76 recommendations were made involving sweeping changes to banking laws in the financial industry.
The report aims to make way for a more transparent industry where the transfer of wealth from banks to consumers is fairer.
Some of the shake-ups include:
MORTGAGE BROKING
MORTGAGE BROKING was by far the hardest hit industry.
The Outcome: Mortgage brokers now need to act in the client best interests.
Biggest changes are:
- Borrowers not the lender should pay the broker fee for home loans.
- Trailing commissions on the loan are to be abolished.
- Mortgage Brokers to be regulated by the law that applies to financial advisors.
SUPERANNUATION
The biggest changes:
- One default super account per person. Workers would be ‘stapled’ to an account like a Medicare number.
- No deductions of advice fees from MySuper accounts.
- No hawking or pressure selling of superannuation products.
REGULATION
- Establish an oversight body for APRA and ASIC to assess the effectiveness of each regulator.
EFFECT ON HOUSING MARKET
All this regulation so far has caused a softening of the market.
As liquidity has tightened and banks have a lot of risk at lower levels in interest rates will this continue?
