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Turfed MFAA broker banned by ASIC

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Australian Broker | 06 Jun 2012, 06:00 AM Agree 0
A broker who was stripped of his accreditation by Choice and ANZ and expelled by the MFAA has now been dealt a three-year ban by ASIC
  • ozboy | 06 Jun 2012, 09:58 AM Agree 0
    This is great news it's nice to see ASIC out there doing this I just have to wonder why it took 6 months from him being expelled by the MFAA (after being on suspension since 2009...what does that really mean!?). Good work but a little more haste would not go astray after all Mr Naylor is constantly talking to all and sundry at ASIC so did he fail to mention this?
  • Peter | 06 Jun 2012, 10:05 AM Agree 0
    its good the industry is being regulated but I'm sure all other brokers with years of experience and knowledge have better things to do than to complete CPD points and the tedious requirements of Credit Licencing. We're trying to run a business, not a compliance workshop.
  • Country Broker | 06 Jun 2012, 10:51 AM Agree 0
    The requirments to comply with the annual compliance certificates for a licenced broker ARE NOT difficult and are really easy to understand , it is good to see that ASIC have acted, the slow reaction by the MFAA is understandable, as they need to check out all the circumstances before taking the action they did, I would have preferred to see that happen a little quicker .
    This serves as notice to all the cowboys out there, you can no longer sleep well at night!
  • Stephen Dinte | 06 Jun 2012, 11:04 AM Agree 0
    This story highlights the fact that it is remains too easy for a person with limited knowledge and experience to gain acceptance by an aggregator, by our industry body and then be granted accreditation by lenders. It is the drive by these groups for income (greed) that allows this to occur. Nothing has changed during all my years as a broker, and I certainly don't expect that things will change in the future. The MFAA & ASIC will turf out the odd one or two, simply as a muscle flexing exercise and to ensure we remember that they are around.
  • brokerboy | 06 Jun 2012, 11:45 AM Agree 0
    agree 100% with peter...70% time making sure NCCP is correct...but does this mean my client is better informed?
  • Peter | 06 Jun 2012, 12:00 PM Agree 0
    @ Country Broker - Glad you don't mind the time spent on compliance audits, CPD training hours, annual compliance certificates, MFAA money factory...sorry MFAA workshops etc... Maybe they should make them optional and you can do all this voluntarily.
  • Tim | 06 Jun 2012, 12:05 PM Agree 0
    The question has to be asked, If this bloke wasn't good enough to be a Choice or ANZ broker and was expelled by the MFAA (three major players in our industry) why let him back at all? It appears he has been given chances to do the right thing but hasn't complied.
    PS: Sick and tired of hearing brokers winge about how much extra work has to be done for NCCP. If it is that hard for you then get out of the industry. NCCP was long overdue and this action taken against Mr Prasad highlights this !!!
  • Neil Cook | 06 Jun 2012, 12:12 PM Agree 0
    Completely agree with Peter. There are those of us who come from banking and finance backgrounds, with years, if not decades of practical experience and skills far beyond the average broker. If I can get my Cert IV through recognition of prior learning, confirmed by 38 years verifiable experience, why do I need to undertake continual compliancing which only wastes my time?
  • BONED | 06 Jun 2012, 12:15 PM Agree 0
    I'm still miffed as to why 20 something % of Licence applicants who incorrectly completed their ACL Application weren't declined based on their inability to competently complete and submit a rather simple Application?! That should have served as a red flag to ASIC and it would be most of these people that drive our 'quality/conversion' metrics with Banks down. Still too toothless ASIC! Also agree with Brokerboy! My Clients are no better off now that i have a Licence...
  • Peter | 06 Jun 2012, 12:18 PM Agree 0
    @ Tim - Prasad had his accreditation terminated in 2009 and he was expelled in 2009. This happened long before the NCCP started in 2011. Get your facts right.
  • fred | 06 Jun 2012, 03:34 PM Agree 0
    Have they got mark whittingham YET
  • Broker | 06 Jun 2012, 03:36 PM Agree 0
    NCCP is a just a complete crock and waste of our valuable time and resources, was it invented just to keep the bad eggs honest?...I am yet to meet a client that places any value on it whatsoever, and highly doubt I ever will.

    NCCP about as useful as the new fact sheets issued by banks, which are also completely useless, given that the interest rates ( pro-packs in particular ) are continuously tweaked so often these days , these fact sheets are often obsolete by the time the ink dries, as rates are now a continuous moving target.

    Wasn’t this reform supposed to be about improved transparency for mortgage clients, which in turn would allow them to do their own product comparisons?...well good luck with that process.

    As a Broker I have never been busier, as from a client’s perspective this industry and its products are now ‘clear as mud’, hence why Brokers will continue to be in hot demand.

    We should all thank this incompetent Government for this lunacy, as it is increasing volumes for a lot of Brokers that I know.
  • Loz | 07 Jun 2012, 11:02 AM Agree 0
    I note that my comment about former MFAA directors not being held to account for dodgey business pratcises was not posted...makes me wonder....
  • Tim | 07 Jun 2012, 12:37 PM Agree 0
    Peter, The article clearly states MFAA expelled Prasad in December 2011. That aside I was more concerned that with three major players in the industry not wanting to deal with this bloke (I note it is not stated in the article as to why) that ASIC didn't ban him for good.
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