Heritage CEO speaks out against Royal Commission

Peter Lock – The CEO of Heritage Bank and gone public to condem the recommendation from the Royal Commission that brokers need to start charging consumers for their service. He urged the Federal Government to take great care in considering how this recommendation could be implemented, to retain the spirit of the change without severely affecting the broker industry.

Heritage Bank understands the need for financial services providers to have the best interests of customers as their top priority at all times, as that’s the central ethos of the customer-owned model.

However, banning commissions for brokers could actually be detrimental to customers, and give the big banks a free hit.

We do not support increasing the costs for customers to obtain a home loan, in the form of a customer-paid fee-for-service, and worsen the current affordability crisis for those customers already struggling to afford a home.

Nor do we condone the significant impact to competition that these measures are likely to create.

It is important that strong competition is maintained as this will only benefit the consumer which the Royal Commission is set to do.