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Ban on commissions paid to brokers under overhaul of consumer laws

Ban on commissions paid to brokers under overhaul of consumer laws

MORTGAGE brokers would be banned from receiving monthly commissions from banks which can go on for ­decades and earn them thousands of dollars, under a shake-up of state consumer laws.

These so-called trailing commissions, paid for signing up a client to a home loan, would also be stamped out in the insurance industry as the state government tackles financial incentives paid to third parties.

The proposed laws would also force businesses like travel agents, accountants and product comparison websites to disclose ­financial incentives for recommending a product or service.

State Better Regulation Minister Matt Kean said the proposal was aimed at putting the power back into the hands of consumers while removing red tape for business and boosting transparency.

Other changes include req­uiring funeral homes to ­publish fees and charges on their websites to avoid grieving family members from having to call to be able to compare prices at an emotional time.

Retailers offering extended warranties on goods would also be required to disclose to consumers of the fact they might already be protected under Australian Consumer Law.

“We’re looking at ways to cut down on red tape so businesses have every opportunity to thrive in NSW,” Mr Kean told The Sunday Telegraph.

The full article by Linda Silmalis can be read on The Daily Telegraph online