Frydenberg FOFA banking royal commission
Treasurer Josh Frydenberg (Image: AAP/Lukas Coch)

The government yesterday announced it had "agreed to take action on all 76 recommendations" from the Hayne royal commission. You'll note the peculiar wording, covering the fact that it didn't want to draw too much attention to how it was actually only going to implement 75 of them.

Hayne's recommendation that mortgage broking be moved fully to a fee-for-service model in which borrowers would pay brokers, not the banks, has too many people worried -- not just mortgage brokers, but people concerned about banking competition. The government instead will ban trailing commissions and volume-based commissions for brokers, but won't prevent banks paying brokers. That's a step too far.