Media Statements

The Finance Brokers Association of Australia (FBAA) welcomes ASIC’s report and says it highlights the important role brokers play in helping customers weigh competitive pricing alongside their individual financial circumstances and loan requirements.

“Competitive pricing matters, and brokers will always consider it. But every customer has different circumstances, and a broker’s value comes from understanding those needs and helping them find an appropriate loan,” FBAA CEO Leo Gagic said.

“In its report, ASIC recognises that factors beyond cost can be relevant to a recommendation. That is an important acknowledgement of the judgement and customer understanding brokers bring to their work.

“For example, a self-employed customer may need a low doc loan because of the income documentation they can provide. It may not be the cheapest option, but it can enable them to secure a loan suited to their circumstances.

“Brokers help customers understand their options and weigh up the trade-offs. Clear explanations and strong documentation demonstrate the reasoning behind a recommendation, including why any additional cost is justified.”

Mr Gagic also welcomed ASIC’s finding that brokers did not appear to favour lenders paying higher commissions.

“That is a positive finding for our profession and deserves recognition,” he said.

“As I’ve said before, compliance cannot be viewed as a standalone function or a simple box-ticking exercise. Growth, risk, compliance, governance, and customer outcomes need to be considered together and embedded in how a business operates.

“This is about building trust, professionalism, and long-term sustainability, alongside meeting regulatory obligations.

“The FBAA remains committed to supporting members through education, professional development, advocacy and practical business support, helping brokers build sustainable businesses and deliver good outcomes for their customers.”

The Finance Brokers Association of Australia (FBAA) has appointed Mary-Helen Lockton as Chief Membership & Experience Officer, further strengthening its executive leadership team as it prepares for its next phase of growth.

Ms Lockton joins the FBAA having built a career across membership organisations, customer engagement, events and marketing and advocacy. She has a proven record of developing member-focused strategies that drive growth, retention, and value.

Prior to her appointment with the FBAA, Mary-Helen’s most recent role was as the membership & customer relationship manager at the Real Estate Institute of Queensland, where she led membership, customer service, events, communications, and engagement.

Throughout her career, she has also held leadership roles with the Local Government Association of Queensland, NSW Farmers’ Association and ING Australia.

FBAA CEO Leo Gagic said her appointment would strengthen the support and experience the association provides to members.

“Mary-Helen understands how membership organisations work and how to deliver services and support that members value,” Mr Gagic said.

“Her experience will help us build closer relationships with brokers, respond to their changing needs and ensure they get the most from their FBAA membership.”

Ms Lockton said listening to members would be central to her approach.

“I’m looking forward to getting to know our members and understanding what matters most to them in their businesses,” Ms Lockton said.

“That will help us build on the support the FBAA already provides and identify opportunities to make membership even more valuable.”

Her appointment follows on from the FBAA’s recent executive leadership expansion across financial management, compliance, digital innovation and commercial strategy.

Growing expectations of another interest rate rise following the Reserve Bank of Australia’s latest commentary could be the clearest signal yet that mortgage brokers and their clients are entering a new era of ongoing rate volatility, according to the Finance Brokers Association of Australia (FBAA).

FBAA CEO Leo Gagic said the prospect reinforced the importance of brokers helping clients navigate greater uncertainty.

“Higher rates create challenges for borrowers, but also increase the demand for, and value of, professional mortgage guidance,” said Mr Gagic.

He encouraged brokers to proactively support their clients by reaching out regularly, reviewing loan structures and repayment strategies, and ensuring their lending remains competitive.

Brokers could also identify refinancing and repricing opportunities, help clients negotiate sharper rates, reduce repayments, or consolidate debts, while supporting those under pressure with repayment options, debt restructuring and more effective use of offset accounts.

“Consumers are increasingly looking for guidance, not just transactions.

“Brokers who communicate regularly, explain market developments, provide clear insights, and help their clients understand options will build stronger and lasting relationships and loyalty,” Mr Gagic said.

The Finance Brokers Association of Australia (FBAA) has expanded its executive leadership team with two senior appointments and the elevation of two existing leaders as it prepares for its next phase of growth.

The appointments strengthen the FBAA’s capability across compliance, digital innovation, commercial strategy, and financial management, building greater depth across the organisation as the broking sector continues to evolve.

FBAA CEO Leo Gagic said the changes represent a significant investment in the future of the association and its members.

“At a time when brokers are playing an increasingly important role in helping Australians achieve their financial goals, it is critical that the FBAA continues to invest in the people, systems and capabilities that will support our members both today and into the future,” Mr Gagic said.

CPA-qualified senior finance executive Cara Haward, who brings extensive experience leading finance functions, strengthening organisational capability and guiding commercial decision-making across complex Australian businesses, has been appointed Chief Financial Officer, overseeing the FBAA’s financial strategy.

Nancy Sundar, who brings more than 19 years of global experience in governance, risk, compliance, quality assurance, and information security in highly regulated industries, has been appointed Head of Quality Assurance & Compliance, leading the FBAA’s compliance and professional standards framework.

Two existing FBAA leaders have also stepped into expanded executive roles.

Kirrily Jones has been appointed Chief Digital & Innovation Officer, leading the FBAA’s digital transformation and innovation agenda, while Joanna James is now the Chief Commercial Officer, responsible for commercial strategy and partnerships.

Mr Gagic said bringing together the expanded leadership team would give the FBAA greater depth and expertise across the organisation.

“We have a highly capable leadership team with the experience, energy and vision required to help guide the association through its next phase,” he said.

“Their combined expertise will enhance our ability to advocate for brokers and respond to the changing needs of our industry.”

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The Finance Brokers Association of Australia (FBAA) says new data by comparison group OurTop10 that shows an 18 per cent increase in national mortgage default risk is deeply concerning, but highlights growing financial pressure facing Australian households.

FBAA CEO Leo Gagic has urged borrowers under pressure to seek help before they miss a repayment.

“These findings are not unexpected, as our own published research dating back to 2021 found that thousands of borrowers were vulnerable to even modest interest rate increases after a prolonged period of low interest rates,” he said.

Mr Gagic said the rising risk of mortgage default reflects the combined impact of higher interest rates over recent years and escalating living costs, with many households reaching a financial ‘tipping point’ after years of drawing down savings.

To those currently impacted, he advised to “be open and honest about your circumstances and contact your lender as early as possible. Don’t wait until you have missed a payment.”

“Explain your situation and ask to speak with the lender’s hardship team.”

Mr Gagic noted that lenders may be willing to negotiate a more competitive interest rate or provide temporary relief measures such as reduced repayments, a repayment pause, an extended loan term, or a loan restructure.

“Clearly outline what has changed, what you can realistically afford, and provide any supporting information requested.

“This can help you and your lender agree on a sustainable arrangement that gets you back on track.”

He added that borrowers who are unable to reach a suitable outcome with their lender should consider speaking with a mortgage broker who may have other options.

“Brokers are here to help and have access to a wide variety of lenders, including many that only deal through the broker channel,” he explained.

He said mortgage brokers are obliged by law to act in the customer’s best interest, and will seek to understand the circumstances of the borrower and access available options.

“Lenders often can’t provide a solution because they are limited to their products, but a broker can look for solutions that suit your individual circumstances.”

Mr Gagic said his message to borrowers facing mortgage stress and default is not to panic but seek practical solutions.

“Start the conversation early because there may be more options than you realise.”

The Finance Brokers Association of Australia (FBAA) has responded to new rental market data* showing soaring rental prices by urging the federal government to swallow its pride and change course before it’s too late. 

FBAA CEO Leo Gagic said the latest figures from PropTrack showing national median rents reaching another record high reinforce the concerns the association raised even before the changes to capital gains tax and negative gearing were announced at the last federal budget.

“We warned that discouraging investors would increase costs for Australians who rent, and we are now seeing this happen exactly as predicted,” he said.

“The changes that are decreasing the supply of rental availability while demand is increasing are hurting the very people, they were supposed to help, including Australians on lower incomes, single parents, and aspiring first home buyers.

“How does making it harder for Australians to save a deposit improve housing affordability?” he asked.

“Every additional dollar spent on rent is a dollar that cannot go towards buying a home.”

Mr Gagic said the government must now admit that the policy settings are delivering the opposite of their intended outcome.

“In April, we challenged the government to be prepared to correct course if the CGT and negative gearing changes backfired.

“Now, we’re asking the prime minister and the treasurer to do it.”

*Source: realestatecomau-Market-Insight-Rental-Prices-June-2026.pdf

AUSTRAC has responded to enquiries by the Finance Brokers Association of Australia (FBAA) seeking clarity around whether new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws may have unintentionally captured finance brokers and intermediaries.

Following the updated regulations that took effect from July 1, FBAA CEO Leo Gagic contacted AUSTRAC over concerns that certain finance broking activities, including commercial asset finance broking, could fall within the definition of ‘debt financing’ as a designated service under the act.

Following high level discussions between the association and regulator, AUSTRAC has now acknowledged the validity of the FBAA’s concerns, confirming that item 4 of table 6 may be worded broadly enough to potentially include commercial asset finance broking, while also recognising its current guidance does not explain its interpretation of the scope of ‘debt financing’.

Mr Gagic said the association acted quickly to seek clarity for brokers and he is pleased with the response. 

“AUSTRAC has acknowledged our valid concerns and advised it is actively considering the issue before clarifying its position.”

AUSTRAC has also advised that it does not expect finance brokers to begin working towards compliance until it publishes its position on the scope of ‘debt financing’ under the legislation.

“If the outcome is that finance brokering activities are within scope of the AML/CTF Act, we recognise that affected businesses will need time to work towards compliance, including establishing AML/CTF programs and training staff,” the regulator said.

“Brokers do not need to do anything now, and we will update the industry when we know more,” Mr Gagic said.

Only days after its submission to the Australian Treasury consultation paper on unfair trading practices protections for small businesses, the Finance Brokers Association of Australia (FBAA) has commended ING for “taking an important step in the right direction.”

FBAA CEO Leo Gagic welcomed the lender’s changes to its clawback policy that eliminates clawback of broker commission after 12 months when the loan is discharged due to the sale of property.

Mr Gagic said ING’s new policy is a major move that should be followed by all lenders, but hopes that in the future the company will consider expanding it to include the first twelve months, as “brokers shouldn’t be penalised at all for reasons beyond their control.”

He also hailed ING’s broader relationship with mortgage brokers including its commitment that loans offered directly to customers are not at lower rates than those offered to the broking channel.

“Relationships like this are not only beneficial to both brokers and lenders, but to consumers through increased competition, better service and the knowledge that they will end up with the loan that best suits their circumstances,” he said.

Last week the FBAA announced it had contributed to the government’s consultation paper on unfair practices because the broking sector is made up predominantly of small businesses, and a broker’s livelihood and ability to function is inextricably linked to credit providers.

The submission listed clawback, net of offset, channel conflict, referrer arrangements and broker accreditation as areas that should be strengthened to better support brokers.

“We understand that these can be complex issues but I believe there is room for our industry to discuss these further with lenders,” Mr Gagic said.

“The relationship with lenders is important to me and the FBAA, and I want to always be considering ways we can do things better together.”

He said every step forward that makes it fairer for brokers is a good step, and “if other lenders do what ING has done, it’s a positive start.”

In a submission to an Australian Treasury consultation paper on unfair trading practices protections for small businesses, the Finance Brokers Association of Australia (FBAA) said it wanted to “bring to the government’s attention the unfair trading practices being engaged in by lenders in Australia.”

FBAA CEO Leo Gagic said the broking sector is made up predominantly of small businesses, and that “a broker’s livelihood and ability to function is inextricably linked to credit providers.”

“When managed appropriately, the lender-broker-consumer relationship is a mutually beneficial one, and this is the relationship we are seeking,” he said.

The submission highlighted a range of undesirable practices including clawbacks, pointing out that clawback was intended to stop brokers from being paid for misconduct or non-compliance but has since evolved to clawback being triggered because of borrower conduct.

Mr Gagic said some lenders base clawback calculations around the notion of cost recovery which is unfair and inequitable.

The association also tackled net of offset provisions, calling the way these are being implemented in practice “shocking”, and declaring “slow payments of commission offend the general principles of fairness which are reflected in the expectations set by government under the Payment Times Reporting Act obligations.”

Channel conflict was also raised, with the FBAA submitting, “The desire to build direct channel is causing poor marketplace behaviour including incentivising internal staff to poach and refinance deals originally introduced by third parties, differential pricing whereby a lender will offer an additional rate discount to a customer originally introduced by a broker if the customer refinances through a branch (triggering clawback against the introducing broker in the process) and misrepresentation to customers about the cost of broker commissions increasing the rate they pay.”

The FBAA repeated previous concerns around lenders supporting “unqualified sources and offering payments to accountants, lawyers and others under ‘introducer’ or ‘referral’ arrangements,” pointing out that the Hayne royal commission examined defective introducer programs and found them to cause significant consumer harm.

“The separation of allowing unqualified people to introduce customers for a substantial fee free of clawbacks and other consequences is resulting in anti-competitive behaviours and unfair outcomes against regulated small credit licensee businesses.”

Concern was also expressed over lenders cancelling accreditation of brokers who don’t meet minimum requirements, calling it “repugnant behaviour” that was “more about consolidating direct business over third party channel than protecting consumers.”

Mr Gagic said it was time to end anti-competitive and unfair commercial practices.

The Finance Brokers Association of Australia (FBAA) has requested an urgent meeting with AUSTRAC to discuss the practical implications of the recent AML/CTF reforms and their potential impact on brokers and intermediaries.

CEO Leo Gagic said while brokers should not rush into making major changes at this stage, there is genuine concern around whether brokers are captured by the recent AML/CTF reform measures and any specific obligations that may apply to broker businesses.

“Our industry is keen to understand its compliance responsibilities and ensure we are appropriately preparing for any regulatory changes,” he said.

FBAA regulatory compliance specialist David Carson said the association requested information prior to the July 1 changes because “the way their guidance has been drafted would appear that commercial asset finance broking could be defined as a designated service which would bring it under AML/CTF rules.

“We are not convinced it was ever the legislative intent to capture this activity so we remain hopeful that we can obtain clarification that it is not captured.”

Mr Gagic said AUSTRAC needed to allay the “significant uncertainty and confusion across the broker community regarding whether these changes apply to our sector, and if so, explain the extent of the obligations that may arise.”

“We have contacted AUSTRAC again to seek definitive guidance on these matters, and we note that other industry associations have done so as well.”

He said the FBAA was committed to supporting Australia’s AML/CTF framework and wants to work collaboratively with AUSTRAC.

“It is important for our industry to uphold best practices, for the sake of brokers and our customers.”

Mr Gagic said he hopes to be able to clarify the situation around the changes soon and will update members as soon as he can.