UPDATED: Authority may give MFAA's disciplinary rules clout

by AB27 Mar 2014
The Australian Competition and Consumer Commission is thinking about granting authorisation to the Mortgage and Finance Association of Australia’s disciplinary rules to help with enforcement and public confidence in the mortgage industry.

ACCC has issued a draft determination proposing to grant authorisation for five years to MFAA’s disciplinary rules, including the constitution and code of practice that outlines the requirements and professional standards expected of members.

Since the ACCC last authorised the disciplinary rules in 2009, the National Consumer Credit Protection Act started in 2010.

“The MFAA's membership requirements impose higher educational and professional standards on its members than required under the NCCPA,” ACCC deputy chair Delia Rickard said.

Authorising the rules would help MFAA enforce the standards and would likely improve consumer confidence and protection in the mortgage and broking industries, ACCC said.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.

ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

MFAA welcomed the draft determination of the disciplinary regime, which outlines the process for investigating complaints, expulsion of members and hearing appeals against refused applications for membership or accreditation.

“The MFAA disciplinary process has now been in operation for over 10 years with the authorisation of the ACCC, which recognises the benefits to the community of our high membership standards and the role they play protecting consumers in the mortgage and finance market,” CEO Phil Naylor said.
“The National Consumer Credit Protection Act, enforced by ASIC, has gone a long way to tighten up the mortgage and finance industry’s standards. That is why as an industry body we enforce strict rules on our members to ensure they deliver the best possible service and customer protection.”

ACCC is now seeking submissions on the draft determination.

22,000 mortgage jobs axed in three months

Comparison site crackdown: No substitute for brokers

ACCC takes on ANZ for round two



  • by Stedman 27/03/2014 10:16:11 AM

    The MFFA would then have to re asses who its working for.
    Brokers would just go one further rung down the ladder.
    I would vote with my feet and shift to the only other alternative.

  • by Dave Robinson 27/03/2014 11:50:41 AM

    Well this would add some clout to the MFAA disciplinary area I can tell you now (having seen it in action) that it will need a major overhaul. At the moment they only report to themselves wait til ASIC monitors what they do. Anyone seen the latest report on FOS? Sounds like it might be a bit of buck passing on ASIC's behalf with a cut in funding and a lot of staff rumoured to be asked to leave this maybe a way out for them.