The federal government has announced it won’t ban mortgage broker trailing in order to maintain competition, despite recommendations from the banking royal commission.

Instead, the ACCC will hold a review into whether trail commissions should be kept.

Mortgage and Finance Association of Australia CEO Mike Felton tells Ross Greenwood it’s a “good outcome”.

“Trail has a very important place in our industry.

“Really, the case has not been made for the removal of it.”

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