Best interests and you

Best interests and you

The hotly debated best interests duty for mortgage brokers has now formally passed through both houses of parliament. The bill originated from the Royal Commission into the Misconduct in the Banking, Superannuation and Financial Services Industry. The outcomes of the bill are to amend the existing National Consumer Credit Protection Act 2009 and the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009. 

The bill has amended the National Consumer Credit Provision Act 2009 to now; require mortgage brokers to act in the best interest of consumers, and to address conflicted remuneration for mortgage brokers.   

The best interest duty bill are separate obligations to responsible lending obligations, it is an additional layer of consumer protection. Capita General Manager, Gill McLean, explains that “the bill requirements go further than just providing support when a client is securing a mortgage. A broker is to act in the best interest of the consumer when providing any credit assistance, including credit cards, personal and more”. Capita Finance as a group, has always worked in the best interest of the client. This legislation simply places greater responsibility on the broker, to ensure that the products recommended are appropriate for the customer and that we are not conflicted due to remuneration arrangements. Gill McLean went on to add “we welcome legislation that makes sense and delivers better consumer outcomes”. 

The memorandum reads that “even if a home loan product is ‘not unsuitable’, recommending it to the consumer might not be in the consumer’s best interest”. This creates further security for the consumer, meaning the product they are offered is meant to be the most suitable option for their given circumstances.  


Capita for one, has taken the proactive approach of amending our practices to go beyond the minimums set. Along with our aggregator, we constantly work to providing deliver top quality service to our customers, by ensuring why exceed the requirements set down from legislation.  

If you are looking to secure finance or explore the options that may be available to you, contact us today to get on the front foot.