Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Industry veteran relegates fraud to the past

Notify me of new replies via email
Australian Broker | 27 Aug 2012, 08:00 AM Agree 0
Fraud may have happened, but it was before 2010’s NCCP, says this leading industry veteran and former CEO
  • Patrick | 27 Aug 2012, 11:10 AM Agree 0
    Ray Weir's comment about enforcement is particularly relevant. I suggest that both ASIC and ACCC have a track record of kicking around the small guys to gain publicity but do not take on the major instutions. There was no lack of regulation in the case of Storm Financial and the institutions who distributed loan and investment products through them. That the Statements of Advice were generic and often unsuitable or inappropriate for the client circumstances has been clearly revealed after the fact. That the relevant institutions were also AFS licensees and knew or ought to have known the advice requirements appears to have been disregarded. Had those institutions sought to comply with the spirit of the law as good corporate citizens they would have refused or limited supply of products to many if not most Storm clients. Similarly it has been my experience that non compliance with the Trade Practices Act is systemic among large corporates, particularly the Sec51AC unconscionable conduct provisions. Large corporates routinely exercise their advantage in bargaining power unethically and unreasonably and nothing is done by ACCC. Compliance regimes require costly administrative procedures for the honest majority. When not enforced against the wayward few, these laws become pointless.
  • sidbroker | 27 Aug 2012, 01:10 PM Agree 0
    To Patrick, The point is that these institutions go after the small business people to justify there postion or jobs rather.
  • Faud Broker | 31 Aug 2012, 01:22 PM Agree 0
    So fraud was done before 2010. REALLY. Shock horror, we know this we have many brokers saying yes we did it before 2010.
    Now let the courts begin to repay those who were damaged by FBAA and MFAA Professional Brokers. Why start now with doing the right thing. Oh I forgot under the new code brokers go to jail.
    The courts are getting tough on the pre 2010 shonky brokers and banks. Keep the precedents coming. Any so called professional broker who stuffed up for the easy buck should be looking over their shoulder. Have zero time for born again brokers. I can hear the cries now it was the clients fault, some maybe but also it’s the shonky brokers who were not professional and did not do the right thing or legal thing for the clients as they should have been doing in the first place. Think about it, do the wrong thing now with the code and you go to jail. Why because there were many brokers and yes banks that screwed over people that’s why the law has changed.
    Also we won’t forget the FBAA or MFAA that are also in the crosshairs, what for? How about not doing enough and letting the public think the brokers using the logos on the websites and paperwork are trusted. FBAA and FBAA induced the public to think they were dealing with a professional regulated person what a joke pay the fees use the logo go rip people off.
    Remember the storm clients and many others, 35,000 people so far will be going to, or back to court . Its broker season and yes I am pissed as hell. Do I have axe to grind. Yes and do I care no because the brokers did not give damm when I sort PROFESSIONAL ADVICE . Let’s see if a few brokers lose their homes and if they go for fraud. They don’t have insurance to cover them. Let’s see how it feels, but hey they did to themselves AND they know who they are.
    Can’t wait to her the replies on this post.
Post a reply