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MFAA seeks more time on ASIC's broker 'independence' ban

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Australian Broker | 15 Jan 2013, 08:00 AM Agree 0
As the moratorium on brokers' claims of independence approaches, the MFAA has issued a submission to ASIC asking the regulator for more time to comply
  • Paul Eldridge | 15 Jan 2013, 09:48 AM Agree 0
    ASIC's decision to ban the word 'independent' is wrong. It demonstrates beauracracy not understanding business.

    Mortgage brokers who truly provide access to a range of lenders are acting independent of any one lender.

    This is a nonsensical approach from ASIC.
  • Maria Rigoni | 15 Jan 2013, 10:27 AM Agree 0
    ASIC is the regulator, not the law maker. They are merely fulfilling their role as watchdog.

    It is the law that needs changing as it is just bad, misleading legislation that offers no real protection to Australians.

    The protected "financial counsellor" under this legislation is the good guy and the mortgage brokers are the bad guys.

    The word commission needs to be banned as it is used to mislead the Australian public into a thought that mortgage brokers are paid "excessive" remuneration, which those that are employed in the industry know is utter crap!

    Let's compare a loan writers hourly remuneration rate to that of Wayne Swan, Bill Shorten or Penny Wong.

    The moneys paid by the banks to the mortgage managers and loan writers is gross business turnover and not 'happy play, bonus money'.
  • Trent Lee - bSmart | 15 Jan 2013, 11:35 AM Agree 0
    Maybe Phil Naylor should have been more pro-active.

    I spoke to Phil about Independent Mortgage Broking back in 2004 when we launched bSmart Australia's first Independent Mortgage Broker. Phil thought it was a good idea for the consumer back then.

    How much more time do you need Phil?

    Trent Lee - bSmart
  • David | 15 Jan 2013, 12:02 PM Agree 0
    The real issue is the MFAA's ineptitude in addressing this before it became legislation. If the MFAA was doing its job and had established a credible working relationship with ASIC and Treasury, it would have been involved in assisting to frame the new legislation to ensure its members' interests were protected. It is apparent from this, and events in the past, that the MFAA has become reactionary to legislative changes after all the talk and drafting has been completed. It now appears that there is nothing we can do to change this piece of bureaucratic nonsense, but no doubt MFAA will, true to form, claim a 'victory for members' if ASIC hands it a crumb and concedes a delay for a month or so. There will be times when no amount of lobbying will change the government's view, but this relatively minor issue in the whole legislative landscape does point to the need for a stronger representational body that is not only be heard by the legislators, but also listened to.
  • Lyn Turner | 15 Jan 2013, 12:38 PM Agree 0
    You have had the opportunity to join with other organisations to fight this legislation and have done nothing until now. Too little, too late!
  • Damien | 15 Jan 2013, 01:38 PM Agree 0
    And the stupidity continues, there is something seriously wrong with this nanny/mothering government. I cannot wait till November when we see them thrown out, as they have set this country back 10 years and achieved very little, if anything.
  • Maria Rigoni | 15 Jan 2013, 05:15 PM Agree 0
    As voters we can elect government representatives who are feed up with the status quo and are prepared to push to ensure our laws are good effective laws that do what they say they do.
    I have joined the Bank Reform Party brp.org.au. It would be great to see other brokers supporting the movement.
  • Paul Eldridge | 17 Jan 2013, 07:10 PM Agree 0
    Maria, ASIC are banning the term acting in their capacity as regulator. They can be lobbied to change this.

    A change in government does not mean a change in ASIC
    necessarily. The employees don't leave when the government changes.

    ASIC clearly don't appear to understand market realities. Mobile lenders are not independent as they are selling one banks (their employers) product. Brokers are not employed directly by the bank and are therefore independent of a direct relationship. What ASIC need to do is change this directive to - if you claim to be independent you must meet X criteria.
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