Banking Royal Commission a missed opportunity for automotive sector
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- Published: Thursday, 07 February 2019 10:52
The Motor Trades Association of Australia (MTAA), representing thousands of automotive businesses and tens of thousands of Australians employed in the automotive sector, has expressed disappointment with elements of the final report of the Banking and Financial Services Royal Commission impacting some automotive industries.
MTAA said it was disappointed the Commission's final report appeared to target new car retailing and the provision of add-on finance and insurance products, while at the same time; ignoring completely potential misconduct in the car insurance and repair industry.
'Matters raised in the Royal Commission final report regarding car retailing have been under investigation by regulators for some time, with significant changes already implemented and industry working cooperatively on resolving remaining matters with some dealers already adopting proposed standards. The implementation of government endorsed recommendations to unilaterally remove the exemption of retail dealers from the National Consumer Credit Protection Act, adopt a deferred sales model and cap commissions, will need to be carefully considered . The car retailing industry is already under significant pressure from other powerful market participants and it is important that such changes do not result in unintended consequences detrimental to consumers/ said MTAA.