ASIC should crack down on bank branch managers, association says

by Adam Smith27 Aug 2014
An industry association has called for ASIC to apply the same scrutiny to bank managers as it does to brokers.

According to a Fairfax report, ASIC has pushed to be given broader powers to oversee bank staff in order to better protect financial planning clients. The Fairfax report claimed that ASIC will argue for the expanded powers in its second round submission to the financial system inquiry.

In light of the revelations, FBAA president Peter White has said the regulator should also turn its eye to bank branch managers and their lending practices. White said that the scrutiny applied to branch managers should be the same as that applied to brokers.

"There needs to be a level playing field, because at this stage it seems like only brokers are being targeted by ASIC," White said.

White said FBAA members had expressed concern about the tactics used by bank branch managers.

“It makes sense that if the regulator is already looking at the operations of branch managers in terms of financial planning activities, this be extended to include credit and lending activities," he said.


  • by Rodney Fox 27/08/2014 9:04:34 AM

    I totally agree that branch managers should be regulated or monitored regarding their credit and lending activities. I've seen bank managers being extremely cavalier when it comes to what they will lend. While a broker application would be laughed off as the proposed loan would be considered reckless. Bad credit activities of branch managers is not new and is common place. I wish I could name names!

  • by Steven 27/08/2014 9:06:25 AM

    I couldn't agree more, I've been in the industry for 17 years and I have had clients obtain finance from branches when I clearly could not help them as they were either on Centrelink benefits or earning cash and not declaring their income to the ATO. I can think of 4 bank branches off the top of my head who conduct in fraudulent activity. It's time that a level playing field is applied.

  • by QLD Broker 27/08/2014 9:08:38 AM

    I totally agree with the FBAA. Some of the things that we have seen bank managers and bank loan staff do, the home loans they have approved, there is no way under NCCP we would have been able to do the same thing. It is totally incomprehensible that brokers have to follow NCCP guidelines and go through so many processes and yet bank staff can do whatever they like! Banks should have to do prelim assessments, quotes, credit proposal disclosures just as we do.