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Compliance not that bad, say brokers

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Australian Broker | 23 May 2012, 06:15 AM Agree 0
Australian Broker's online readers say that getting their compliance documentation right is not the headache that others in the industry have claimed that it is
  • Content Broker | 23 May 2012, 09:54 AM Agree 0
    It is definitely not that bad, if you have a good system in place and look for improvements in your process then you will be fine. For those brokers who have been in the industry for a long time, we had many years where we just filled in the applications forms, and a couple of other broker forms, then it was off to the bank. Yes I think that maybe the compliance documents need to be more streamlined as there is a lot of double up, this will happen in time. I am very happy with my Aggregator's Software Package and I know that they are always trying to improve it for the benefit of brokers.
  • Julia Swanee | 23 May 2012, 09:57 AM Agree 0
    Are the "brokers" mentioned in the article saying that they prefer the extra time spent on NCCP paperwork, storage requirements and legal ramifications/mitigations? Are they masochists, or perhaps not brokers at all? Aggregators, brokers .. keep lobbying.
  • Aaron Greffenius | 23 May 2012, 10:49 AM Agree 0
    I find it hard to believe that brokers are out there saying that the new compliance regulations are no big deal. What used to take me half an hour to do now takes almost 2 hours. This isn't due to any lack in my skills as insinuated by one of the respondents. I'm actually quite fast at it, but I'm as meticulous as the legislation requires and its a lot of duplicity. Sure, the aggregators current software can help, but if its all duplicate information anyway, why can't we just say, "refer to the application, as all the inforamtion is already in there"
    I have four main problems with the new regulated climate: 1. Why was it nescessary at all since we didn't have the high mortgagee possession rates experienced abroad? If this is the solution, what was the problem? 2. The basic assumption was that dodgy brokers couldn't operate in the environment. This assumes dodgy operators can't do paperwork. The opposite is true and that was an incredibly niaive assumption. 3. Instead of helping consumers with more safer choices, it simply lead to fewer choices and weekly we hear about more products being pulled and policy tightened. How does this help when we in Aus didn't have the mortgage problems experienced abroad? 4. And lastly, why are brokers being forced to act as credit officers? I haven't heard one good argument why a broker should have to do a preliminary assessment, considering every deal is assessed by the bank who is actually lending the money. We are supposed to knock deals on the head based on our criteria when a bank might be happy to do the deal? Ridiculous, and it showed a complete non-understanding of our service based industry. The real reason for a brokers existence was proper product matching for clients and doing the admin for them. Why is just that role suddenly not good enough? Now I'm have to be a credit officer?!
    The thing about it is that as bad as it is, it will only get worse. Regulators tend to regulate. New regulations will come down, not fewer and our customers will have fewer and fewer choices. Can anybody tell me 1 good reason for this to happen at all? Just one?
  • John Ruddick | 23 May 2012, 04:13 PM Agree 0
    I dont agree. Unnecessary government regulation has suffocated a once dynamic industry. In addition to useless paperwork that confuses clients we are now forced to take time off work to go to stupid training sessions. No-one ever learns a thing at these sessions and it bores us to tears. Regulation has been terrific for existing brokers because the barriers to entry are now so high complex - but its taken a lot of spark out of a once great industry.
  • Will - Perth | 28 May 2012, 07:36 PM Agree 0
    In WA we have had state regulation and licencing for almost 10 years now. Its not really a big deal and in reality increases clienst confidence in us. For the most part it got all the rogues out of the business here and will do same across the country now. Wehave an important task and must take it seriously. If you dont like the paperwork the solution is simple. Get out and find something else to do. It really is that simple
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