has called on brokers to protect their professional credibility by not becoming involved in uncommercial kickbacks offered by property developers.
After Australian Broker
that an anonymous Melbourne broker told the Sydney Morning Herald
that developers are enticing brokers with “unethical” referral fees, FBAA
chief executive officer Peter White
has responded, saying these reports are “concerning and potentially unethical”, but it is important to remember that it is only speculation so far.
“There is talk and there are anonymous sources, but I have the confidence that the majority of professional brokers would not be involved,” White said.
“The NCCP is very clear in that it obligates brokers to act in the best interests of clients and to disclose all conflicts of interest and any commissions from other products such as this, where credit is being provided.
“These sort of excessive commissions would appear to any reasonable person to be a clear conflict of interest.”
White says that while there are some instances where the practice may technically be legal, it is important for the industry that associations like the FBAA
take a tough and transparent stand.
“Bottom line is that almost half the people who borrow for a mortgage use a broker, and these people rely on our expertise, professionalism, integrity and transparency.
“Anything that could potentially bring into question these core qualities cannot be allowed to flourish.”
White says he was not aware of any FBAA
broker who accepted such excessive commissions on property developments.
“I have no doubt it happens with some brokers, but when you carry the FBAA
name there is a requirement to be a leader, and you will not be able to carry our name if you put your own interest above that of the client.”