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Sydney broker cops ASIC ban

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Australian Broker | 16 Apr 2013, 09:00 AM Agree 0
ASIC has banned yet another broker, alleging false and misleading conduct in relation to more than $4m of loans
  • Peter | 16 Apr 2013, 10:32 AM Agree 0
    This is a grey area:-

    "The regulator said Sperling failed to independently verify income and employment details before submitting the applications."

    This article does not state whether the broker was falsifying the employment details, or was the client giving false information to the the broker?

    Is it up to the broker to call the clients employers to verify the employment details? How far does ASIC want the broker to go?

    I'm all for regulating dodgy brokers but treating clients like criminals is not good for our business.
  • Country Broker | 16 Apr 2013, 10:46 AM Agree 0
    I find the comment 'yet another Broker" to be quite inflamatory , there are at least 10,000 brokers with licences or credit rep status! But we do need these people out of the industry!! , ASIC has banned no more that 15-20 brokers for this type of conduct that is 0.20% of the industry !!!U
    In this case the misleading information was supplied between Oct 2010 and NoV 2011 , yes he is a guilty and should have been checking the information. I also need to ask , were the lenders conducting their own independant checks ?? Perhaps they were if so why has this taken so long to be identified and dealt with , 18 monthns is too long .
  • Adrian | 16 Apr 2013, 11:16 AM Agree 0
    Peter -in response to your comment - "is it up to the broker to call the clients employers to verify the employment details" - the answer is DEFINATELY YES!
    Brokers have the obligation to verify employment and income, so why run the risk of being exposed to fraud etc, when a simple phone call (supported by other document sources) can alleviate the risk!
  • Peter | 16 Apr 2013, 12:36 PM Agree 0
    Hi Adrian, do you inform the client that you will do an employment check on them? Do you ask them to sign a privacy declaration form for your purposes? How do they react to your request to do an employment check?
  • Papery | 16 Apr 2013, 04:17 PM Agree 0
    My understanding that this type of verification was 'scalable'.
  • Phil O | 16 Apr 2013, 05:05 PM Agree 0
    What do some of you want to be? A salesman or a Mortgage professional?
  • Brisbane Broker | 16 Apr 2013, 09:11 PM Agree 0
    Is asking for 2 original payslips less than 1 month old, confirming employer name and employee position and income (which is most lenders requirements) not doing verification? If the client gave me less than that, yes I would do my own due diligence which would be along the lines of original employers letter and such agreed on lenders policy. As a last resort even if I rang employer lender won't accept my verbal, they will still require hard copy. So what good is PHONING employer?
  • SIDBROKER | 16 Apr 2013, 11:19 PM Agree 0
    To Peter, ASIC wants brokers to go to the edge and then jump off.
  • SteveL | 17 Apr 2013, 10:09 AM Agree 0
    Reading between the lines here is seems the broker may have had more to do with the fraud, however this couldn't be proven. Otherwise it would be a simple compliance issue and would have been dealt with at ACL level. Always best to cover ones a55.....
  • Broker | 17 Apr 2013, 10:31 AM Agree 0
    So two recent payslips and a Group Certificate or ATO assessment notice is no longer sufficient evidence, without the need to call the employer as well....what the hell is going on here???
  • Broker | 17 Apr 2013, 10:34 AM Agree 0
    Failing to verify information submitted in loan applications blatantly disregards the fundamental principles of engaging in credit activities. Those who do not adhere to their obligations will be removed from the industry," ASIC commissioner Peter Kell said.

    But not if you are a lender I suppose??
  • over it | 17 Apr 2013, 05:22 PM Agree 0
    go asic go.. do your best
    i wonder of there are more corrupt politicians and police than corrupt brokers hmmm?
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