Preparing for BID - Broker Comments

Updated by Caroline Pollard

This week we look at the 'Broker comments' section in CHIEF to help prepare you for the introduction of Best Interests Duty (BID) on 1 January 2021. 

As part of your Best Interests Duty obligations (under RG 273.90), you must present your recommendation in a way that clearly educates the client/s on how the recommendation is in their best interests. Furthermore, you should also articulate why you have recommended this option as opposed to the other options available.

Broker comments In order to make your recommendation, you must complete the following sections in the 'Compliance comments and documents' tab:

  • Analysis, assessment and applicant education comments;
  • Options presented and recommendation comments;
  • Borrowing power commentary;
  • Deposit/Equity comments;
  • Credit history comments;
  • Security (property) notes;
  • Application submission notes; and
  • Living expenses comments.

Note: Chief users can hover over the '?' icon next to the 'Broker comments' headings to read the tooltip for guidance on completing these sections.

Word count

To demonstrate best practice, we recommend 400 words or more in your broker comments. More importantly, it is quality rather than quantity that matters and some points to consider when adding comments are to ensure that they are clear, concise, current and accurate.

Writing your broker comments

When you are preparing your broker comments, it may be beneficial to prepare a concise narrative summary which connects the various records you have kept. RG 273.170 states that a narrative summary can be an effective way of outlining why particular product/s were recommended, the decisions made by your client, and the steps you took throughout the process to act in your client's best interests.

 

 

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