Best Interests Duty
YML Finance is committed to acting in your best interests at all times. As a licensed mortgage broker, we are bound by the Best Interests Duty (BID) under the National Consumer Credit Protection Act 2009 (Cth), which requires us to act in the best interests of our clients when providing credit assistance.
What is the Best Interests Duty?
The Best Interests Duty (BID) was introduced by the Australian Government as part of the Treasury Laws Amendment (Putting Consumers First – Establishment of the Australian Financial Complaints Authority) Act 2018 and came into effect for mortgage brokers on 1 January 2021.
Under the Best Interests Duty, mortgage brokers must:
- Act in the best interests of the consumer when providing credit assistance
- Prioritise the interests of the consumer over their own interests and those of any related party if there is a conflict of interest
- Ensure the credit product recommended is not unsuitable for the consumer
- Make reasonable inquiries about the consumer’s requirements, objectives, and financial situation
How YML Finance Fulfils Its Best Interests Duty
At YML Finance, our Best Interests Duty obligations are central to how we operate. Here’s how we ensure we meet these obligations:
Understanding Your Needs
We take the time to understand your complete financial situation, including your income, expenses, assets, liabilities, and future goals. We ask detailed questions to ensure we have a thorough picture of your needs and objectives before recommending any loan product.
Researching the Market
We research our panel of lenders to identify suitable loan options that meet your needs. We consider a wide range of factors including interest rates, fees, features, flexibility, and lender policies to find the most appropriate solution for your circumstances.
Providing Clear Recommendations
We provide you with clear, written explanations of our recommendations and the reasons why a particular loan product is in your best interests. We explain the benefits and any potential risks or limitations associated with the recommended product.
Managing Conflicts of Interest
We disclose any actual or potential conflicts of interest, including the commissions and fees we receive from lenders. Where a conflict exists, we prioritise your interests over our own or those of any lender. Our remuneration structure is detailed in our Credit Guide.
Conflict Priority Rule
Where we have a conflict of interest — for example, where recommending one product over another may benefit us financially — we are required by law to prioritise your interests. This means we will always recommend the product that is in your best interests, even if it results in lower remuneration for us.
Our Remuneration
YML Finance is remunerated primarily through commissions paid by lenders. These commissions do not affect the interest rate or fees you pay on your loan. Full details of how we are remunerated are set out in our Credit Guide, which is provided to you before we provide any credit assistance.
Your Rights
You have the right to:
- Ask us to explain why a particular product is recommended for you
- Request information about alternative products we considered
- Raise concerns or make a complaint if you believe we have not acted in your best interests
Complaints and Feedback
If you have any concerns about how we have acted in relation to our Best Interests Duty obligations, please contact us. We take all complaints seriously and will investigate and respond promptly.
If you are not satisfied with our response, you may lodge a complaint with the Australian Financial Complaints Authority (AFCA) at www.afca.org.au or by calling 1800 931 678.
Contact Us
If you have any questions about our Best Interests Duty obligations or how we operate, please do not hesitate to contact us. We are happy to discuss any aspect of our service with you.
YML Finance
Australian Credit Licence: 389087
Email: info@ymlfinance.com.au