ACCC upholds mandatory MFAA membership

by Adam Smith11 May 2012

The ACCC has affirmed controversial third-line forcing notifications requiring brokers to be members of the MFAA.

An ACCC spokesperson has told Australian Broker the competition watchdog will allow the notifications to stand for Aussie Home Loans and Mortgage Choice. ING Direct has withdrawn its notification, and Virgin Money said it no longer engaged in the practice.

Brokers have been roundly critical of the measures, sounding off repeatedly on the popular Australian Broker online forum to express their displeasure.

But ASIC supported the notifications, saying in a submission to the ACCC that mandatory MFAA membership carried with it potential consumer benefits.

"Participation in the mortgage industry appears to remain accessible under current arrangements," ASIC said.

ACCC chair Rod Sims echoed the comments, saying the forcing notifications ensured high standards for brokers.

"The ACCC believes the arrangements continue to deliver a benefit to the public, notwithstanding the commencement of a national regulatory regime for the credit industry in 2010," he said.

The ACCC conceded that the notifications reduced competition among industry associations, but argued that as they affect only Aussie and Mortgage Choice brokers, the public detriment was "likely to be minimal".

Related stories:

Watchdog zeroes in on mandatory MFAA membership


  • by Peter 11/05/2012 2:22:06 PM

    What a load of rubbish! The ACCC have been manipulated to support MFAA. I had a trainer of a Cert IV course tell our class that you had join MFAA as some lenders won't accept FBAA. She said that CBA was one of thee lenders. Our aggregator said this was not true as the accreditation forms to CBA state FBAA as acceptable. Our aggregator questioned if the trainer was running on commission to say this. Another example of MFAAs third line Forcing????

    If MFAA is body that regulates the industry, ie brokers. Then there damn well should be an industry to regulate MFAA.

  • by Broker 11/05/2012 2:24:48 PM

    I read this as meaning MFAA - OR - FBAA.
    Please tell me that's true!

  • by Bruce 11/05/2012 2:30:35 PM

    This relates to a couiple of retail groups. The rest of us select an Industry Body based on their services, activity and contribution to ur business. I certainly could not have afforded the lobbying undertaken by the MFAA on my own and am happy to be part of that community.