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TV: Disclosure docs putting squeeze on broker business

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Australian Broker | 21 May 2012, 05:45 AM Agree 0
Time-consuming compliance documents mean some brokers are having to turn business away as they suffer from rising costs and a lack of staff to meet demand
  • Ripped off broker | 21 May 2012, 10:34 AM Agree 0
    spot on, some much red tape that you could almost mistake yourself for having some governement office position where productivity only applies to the mining sector.
  • Country Broker | 21 May 2012, 10:55 AM Agree 0
    am I a one out , if you use a CERM that popultaes all your disclosure documents it is not that difficult , get the credit disclosure out immediatly the client is in as an enquiry and then collect the information (you should know hat that is) and then the system if it is a good one should Generate all that you need to give the cleint ready for signing automitacally.
    I am not that technically minded and i can do this and do not find it a burden.
  • Ken Crawford | 21 May 2012, 11:10 AM Agree 0
    I must be on another planet?The documents used now, apart from some changes to the logos, are very similar to those I was using immediately prior to NCCP. Yes the privacy document (Credit Guide) might be longer, and yes there can some repetition between Credit Assessment and Credit Proposal documents, but in the main I am taking the same time to do my interviews as i always have.

    If anything needs to be adjusted it is the disparity between real estate and NCCP legislation. Costs? we have to have a few more files, but then that is only good business and I have never had a case where the client has been fazed.
  • qedrisk | 21 May 2012, 11:14 AM Agree 0
    Sorry folks, I respectfully disagree. If disclosure docs are eating up too much time, you're doing it wrong. For 98% of deals, using totally manual documents, most brokers should be spending no more than 10 minutes a deal on preparation of these docs - even less if your broking platform automates the docs for you. I see too many (mostly aggregator-provided) docs that are far too complex and "lawyered-up" to the max. The only thing about NCCP that should be taking your time up is perhaps more careful note-taking than you used to do.
  • iMac | 21 May 2012, 01:00 PM Agree 0
    Death by a thousand cuts - is what’s happening to brokers, and this extra NCCP compliance burden is another in a long line. You only have to look at Fin Planners to know what’s in store for brokers.
    Never the less, I agree that aggregator NCCP docs are ridiculously verbose and lengthy. They are put together by 'compliance' people who have no understanding of the commercial reality. It is a Licensees responsibility to formulate docs that comply, and also commercially viable. They are the responsible entity in ASIC's eyes.
    With you compliance docs, comply certainly, but slim them down absolutely, and automate them on excel to reduce repartition and calculation time.
    And aggregators are confused. Many of them think they are a licensee. These days they are an unnecessary and costly layer in a broker’s business. My aggregator has gone from a being a help, to being a hindrance. We really don't need them at all these days. Look at the Fin Planning model, they don’t have aggregators, they have licensees. If you’re a licensee, then be one in the Fin Planning model, and get rid of your aggregator.
  • John Morley | 21 May 2012, 01:03 PM Agree 0
    I agree, its a straight forward process. It is a bit clunky and can be improved but for me its not a road block to servicing customers.
  • Steve McClure | 21 May 2012, 05:11 PM Agree 0
    Agree with Ken & qedrisk & John. If compliance documents are taking too long, then no doubt your forms are poorly constructed. ACL holders have to take responsibility for that. But really, turning away clients because of compliance obligations?? Send 'em over.
  • Sally | 21 May 2012, 07:32 PM Agree 0
    I would have to say that if this article represents the true facts, then no wonder legislation was needed in the first place. Seriously, if you are having trouble telling clients the facts and using the prescribed documents, then you probably have always been taking short cuts. It is interesting that at least two of the responses have come from WA. These are well trained professionals who don't take short cuts and treat the process with the respect it deserves.This is your client's largest financial decision, the least you can do is take your time in getting the correct information from them. A little bit of care at the beginning, will eliminate all the problems on the other end.
  • A Broker | 22 May 2012, 09:02 AM Agree 0
    Salespeople are traditionally pretty ordinary at doing paperwork. As such, I tend to concur with many of the above commenters that suggest that it may be an individual's own work practices causing grief rather than the documents themselves. Sure, they're an extra layer of complication, but they take perhaps 10 minutes to produce. If brokers are finding that these documents are taking up that much time, maybe they need to hire an admin assistant to free them up from paperwork, thus freeing them up to sell?
  • sidbroker | 22 May 2012, 10:28 AM Agree 0
    NCCP is unconstitutional and has to be scraped. End of story!!! We don`t need ASIC or ACCC either as they are only a burden invented by beauricrats that don`t have a clue.
  • sidbroker | 22 May 2012, 10:41 AM Agree 0
    Top marks to the editor for publishing my previous email. I have written to Tony Abbott through his website with my above views and perhaps if you agree with me then you could also write to him also. Draconian regultaion is killing our our nation by stealth and we need to put a stop to it.
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