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Policy that requires lenders and anyone giving financial advice to act in the best interest of their client or customer, ensuring their advice meets their client’s circumstances and objectives. This also goes hand-in-hand with responsible lending.
The best interests duty for mortgage brokers is a statutory obligation to act in the best interests of consumers, and to prioritise consumers’ interest when providing credit assistance (conflict priority rule). Banks and non bank lenders are not subject to BID, so may legally provide product recommendations that benefit the lender more. All lenders are bound by responsible lending obligations.
