Joint Committee has consumer loans in its sights

The Parliamentary Joint Committee on Corporations and Financial Services' inquiry into financial products and services will include a review of banking products.

Reflecting the transfer of oversight of consumer finance to the Commonwealth, which will take effect next year, committee chairman Bernie Ripoli said such products as mortgages and margin loans would be included in the review.

On February 25 the joint committee announced that it would inquire into issues related to the collapse of financial services providers such as Opes Prime and Storm Financial.

The review, which is due to report in November, will have particular reference to the role of advisers, the regulatory environment, the role played by commission arrangements and the role played by marketing and advertising campaigns.

Speaking at the Institute of Actuaries conference in Sydney yesterday, Ripoli said the area of marketing and advertising was one that "niggled" him.

"We will look at whether marketing is targeting vulnerable people."

Ripoli said it was important to learn from recent events and to maximise investor safety.

In the past such reviews would have focused solely on investment products. Consumer lending is very much part of the agenda now.