Lendi CEO ‘disappointed’ by BID delay
The CEO of online broking platform Lendi has said he is “disappointed” at the delay of the implementation of the Best Interests Duty as it provides the broking industry with the upper hand over the direct channel.
Speaking to The Adviser following the news that ASIC was delaying the implementation of the Best Interests Duty from 1 July 2020 to 1 January 2021, the head of the online brokerage said he was “disappointed” that the new obligation was being delayed.
Elaborating, Lendi CEO David Hyman told The Adviser that the brokerage was “fundamentally big supporters” of the BID, as it provided the broking industry with an advantage over the direct channel.
Mr Hyman explained: “We’re disappointed that it was delayed. Fundamentally, we’ve been big supporters of it. We think customers deserve to know that when they’re dealing with a broker their actions are actually in the customers best interest.
“I actually think the best interests duty is a great opportunity for the broker industry to differentiate itself from direct bank origination. One of the things that was interesting around Commissioner Hayne’s recommendation [from the royal commission] and the subsequent legislation is that the duty only applies to brokers; it doesn’t apply to banks.
“While that’s not ideal… it’s a great opportunity for brokers to further differentiate themselves,” he said.
To read more, please click on the link below…
