Broker practising certificate MFAA's idea: Naylor

by Adam Smith24 Feb 2012

MFAA chief executive Phil Naylor has said the idea of a certified practising certificate for brokers is not a new one, and that the MFAA have been working on the initiative for some time.

CBA executive general manager of third party and mobile banking Kathy Cummings has commented that brokers should have to earn a qualification proving practical acumen.

Naylor has now told Australian BrokerNews this initiative has been spearheaded by the MFAA since 2009.

"At this time there is not a practical theories test, and that's why we have stated as an official requirement that members have to do practical co-studies," Naylor said.

"Part of the MFAA's strategic objective as well as having education requirements is that members will be required to obtain a practice certificate. We are currently talking with lenders to ascertain the requirements. It's not something new. It's part of what we have wanted to achieve for a number of years."

While Cummings supported the MFAA's Diploma requirements, she questioned the value the qualification added to the industry. Naylor has argued that the association's Diploma requirement positions brokers as professionals, while a practical certification would ensure their competency.

"We're building the broker to be seen by the regulators, by the public and by the media as a professional. They're all building blocks of that, the educational standards and the practical standards," he said.

Naylor would not be drawn on whether any practical certification would use lender conversion ratios as a benchmark, and instead claimed the MFAA was still gathering feedback from lenders to "ascertain what they think is appropriate". He said he hoped the association could gather the necessary feedback from lenders soon, and assured brokers that their feedback would be sought on any potential certification requirements.

"The challenge really has been to be able to get lenders to understand and agree with the concept, and we're working through that process now. We need engagement from lenders, and then we'll seek feedback from our members, and feedback from the broking groups and aggregators," Naylor said.

"It's something that's not gong to be done from an ivory tower. We're going to be talking to a lot of people to make sure we get it right," he added.

Related stories:

CBA champions new broker practising certificate


  • by Damien Natoli 24/02/2012 8:57:39 AM

    Well of course the MFAA did , who else would?

  • by Kate 24/02/2012 9:52:29 AM

    Well of course MFAA - you make money out of it!
    But if you keep adding costs to brokers - and without renumerating them appropriately you will have none left MFAA - and do you think you will have the bank support then?? They will have no use for you either. So some foreward thinking MFAA - you certainly are no friend of the brokers

  • by old Broker 24/02/2012 9:53:05 AM

    Why are CBA consulting with the MFAA, our industry is now governed by ASIC, if CBA want to create change it should be through ASIC not their "Industry Body" the MFAA. This is more of an example of the MFAA working for the Lenders and not for its members, BROKERS. No surprise really, the reason i am no longer a member of this pointless organisation.