Treasurer Josh Frydenberg announces that the government "will not prohibit trail commissions on new loans but rather review their operation in three years' time", a decision being welcomed by the industry.

MFAA CEO Mike Felton said this was a great outcome for consumers, as the preservation of the mortgage broker channel would continue to promote competition in the home lending market, which protects customer choice and access to credit.

While yesterday's announcement was cause for some relief, Peter White of the Finance Brokers Association of Australia (FBAA) warns that the discussion may not be over just yet. With a federal election looming and a review date in three years, there is some uncertainty as the industry goes forward.

Read more about the decision in The Adviser's recent article.