Broker sackings leave FBAA laughing all the way to the bank

by Mackenzie McCarty26 Mar 2013

The MFAA ‘did the right thing’ by cancelling 1,100 broker memberships, says FBAA CEO, Peter White, but the idea that brokers should be forced to undertake the diploma is 'ridiculous'.

“I think the MFAA acted in accordance with what they said they were going to do and that’s the right thing. They kept pushing the date back and at some point they have to draw a line in the sand and obviously they’ve done that. I think it’s appropriate.”

However, this is where White's support of the MFAA's policy ends.

“To me, the diploma is a joke. You speak to anyone that goes to university – they’ll say it takes 2-3 years to get a diploma, not three to five days. Requiring brokers to take the diploma is garbage as far as I’m concerned.”

He says the FBAA, which doesn’t require its broker members to complete the course, feels the diploma isn’t well suited to new brokers in particular.

“It’s predominantly focused on business running, not on consumer lending; 75% of the course is not related to home loans. If you want to do the diploma because you think it will be beneficial to you, we support you 100%. We’re not against the diploma – I’m just against enforcing it…If you have been lending for 5-10 years and you do that course, I think it’s good value. But if you’ve never done any lending in your life, it’s ridiculous.”

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  • by Broker 26/03/2013 10:24:20 AM

    The MFAA must be loving this.

    Nice to see the chickens come home to roost!

  • by Rastafarian 26/03/2013 10:27:48 AM

    I agree, having done the Diploma which was mostly RPL based in a fortnight, that it really does not provide any new knowledge to brokers, who mostly would have known the vast majority of the content through experience.
    A few years ago there was a push to make Brokers 146 compliant, I certainly hope that is not the next step on the agenda,

  • by Michael 26/03/2013 10:28:29 AM

    I think that this is a case of not seeing the forest for the trees. Industry participants need to consider from an industry-wide perspective rather than an individual, myopic view.

    Take a step back and compare the narratives each industry body is trying to create: The MFAA with a diploma-level membership who undertake substantial continuing professional development; versus the FBAA who has no entry requirements and no ongoing CPD. In fact, the FBAA revel in the fact that they'll take any broker who can't be bothered with the higher standards enforced by the MFAA.

    Now lets fast-forward our thinking and consider how the future may play out for the two groups... Hmm, I know which one I'd be hitching myself to the coat-tails of...

    Oh, and a footnote regarding ongoing education: If you don't think you're going to learn anything from a diploma, then you probably wont.