Actions Taken to Combat the Recent RC Recommendations
Following on from Frank's recent communications, I wanted to update you on what action has been undertaken to combat the recent Royal Commission recommendations and the Government's response
The Royal Commission has signalled changes that could threaten your business. We have been preparing for this since the release of the Interim Report in September 2018, and now it is time to act.
1. Mark Bouris: continues to meet with Government and Opposition leaders, including media appearances. We will continue to leverage Mark's connections on both sides of politics to ensure we communicate the importance of the mortgage broker to the consumer. If you haven't yet had the chance to hear Mark's interview on 2GB discussing what impact the Royal Commission Recommendations may have on the mortgage broker industry, small business owners and the consumers. Listen to the full interview here Please think about passing this on through your social media.
2. FBAA campaign using lobbyists: We have contributed to and are working with the FBAA on engaging several lobbyists. They will 'open key doors' that cannot otherwise be open. This strategy is critical if we are to maximise the opportunity and ensure we don't have politicians saying things to get elected, and then do the complete opposite post being elected or keep us all feeling good about ourselves only to find out they are knifing us regardless.
3. MFAA campaign above the line & petition:
We are also been involved with the MFAA and will become more deeply as we move forward. You may not see our logos initially but they will begin to appear in further media including TV commercials. Please click here to see the MFAA media release.
For the last few months, we've been working with the MFAA on the 'Don't Kill Competition' campaign, an integrated national campaign of public relations, government advocacy, mass media and digital advertising, and grassroots customer activation.
The industry has come together like never before, with aggregators, lenders and other suppliers pooling their resources to fund this campaign, which is designed to utilise the support of everyday consumers and voters to amplify the message intended for decision-makers and politicians.
Over the past three weeks, the MFAA has been working to convince journalists and commentators that a ban on broker commissions would kill competition, reduce access to credit and make getting a home loan harder and more expensive. This PR campaign was aimed at laying the foundation for the larger 'Don't Kill Competition' campaign - it has driven significant positive media coverage and an improved understanding of our industry.
But the real battle begins now. The Royal Commission has recommended policy changes that would greatly damage our industry, and each of us must now take action.
MFAA Industry Defence Campaign - The MFAA launched the defence of the mortgage broking industry, with a national campaign - Don't Kill Competition - designed to show consumers and politicians what a world without mortgage brokers would look like.
The campaign comprises advertising across newspapers, radio, outdoor (billboards), television and digital platforms and is designed to demonstrate that banning commissions would be a great outcome for large lenders with branch networks, but a terrible outcome for everyday Australians.
The campaign kicks off with full-page advertisements in national newspapers (the Australian Financial Review and The Australian), before leading into television and the other outlets over the weekend.
It also features a microsite at www.brokerbehindyou.com.au which has the relevant facts and content for you to share and promote, including pre-populated letters for both brokers and consumers to send to their local MP to show their support - our website will automatically populate an email to your local Federal MP, based on your postcode.
You can use the MFAA material to support the cause by making your voice heard. This means we need all brokers to do four things in the coming week:
1. Take action with your local politician: Contact your Federal MP and let them know how you feel, by going to www.brokerbehindyou.com.au, clicking the link and sending the pre-populated letter to your local MP. This will take you less than one minute and has a significant impact.
2. Get others involved: Talk to your family, friends and your customers and ask them to go to the site and contact their Federal MP as well - there is a separate letter of support designed for consumers to send.
3. Sign and share the petition: There is a petition available at www.brokerbehindyou.com.au please sign and share the petition to ensure policy makers understand the weight of support behind the channel.
4. Share the campaign: Additional campaign advertising collateral will be made available on the MFAA website and can be used to share and promote on your social media platforms daily over the next week and beyond.
Now, more than ever, we must unite as an industry and remind our politicians and policy makers that mortgage brokers are vital for healthy competition in the home lending market, are highly valued by their customers and are out there, every day, driving great outcomes for Australians.
This campaign is going to be a marathon, not a sprint, and as it develops the MFAA will make new resources available which can be used to promote the campaign and activate your customers.
I urge each of you to take the time this week to support this campaign.
What else can you be doing yourself?
1. Look after your book - This is the most valuable asset you have and the longer the book stays post 1st July 2020 the more valuable it will be. Proactively contact your customers, ensure all their needs are being met e.g. Insurances, car finance, additional lending, business lending
2. Social Media - Keep the conversations going. Share, post, tweet, comment or like Mark's radio interview and media appearances
3. Contribute to the MFAA campaign - I will send more detail on how you will be able to help fund an ongoing MFAA campaign. This will enable us to continue the campaign for a longer period of time and more broadly.
4. Talk with your local member and opposition member - As well as using the above MFAA material, I have attached a letter template that you can customise. I have spoken at PD days on how you can explain to your local Federal member on how important you are in the local community and the impact you have. By materially changing the way a broker is compensated for what they do will have unintended consequences.
Here are some additional guides for you to download:
EACH OF US MUST TAKE ACTION NOW!