The Banking Royal Commission report proves that even within regulated environments lawlessness can be rife, says Property Investment Professionals of Australia.

PIPA chairman Peter Koulizos says the many examples of criminal activity in the financial services sector was a sign of what happens when money is more important than client outcomes.

“The report suggests many in the sector were motivated by greed rather than acting in their client’s best interests,” he says. “However, such a blanket statement does a disservice to the majority of honest employees working in the industry.

“Mortgage brokers, for example, create much- needed competition and deserve to be paid for their service, so we’re pleased the Federal Government has questioned the recommendation that commissions be paid by consumers rather than banks.”

The PIPA Investor Sentiment Survey found 75% of investors secured their last investment loan through a mortgage broker and 86% intend to finance their next loan through a broker.