The MFAA has reported a “substantial drop” in disciplinary matters during 2013, according to the association’s Disciplinary Tribunal’s annual report to the MFAA Board.
According to the report six members were expelled or suspended during 2013 as a result of the tribunal investigations, while memberships were also cancelled as they no longer met the MFAA’s stricter membership requirement.
The membership cancellations were on top of the 1100 cancellations in 2013 as a result of mortgage brokers failing to meet the stricter educational standard. Over 400 of these expelled brokers were later readmitted having satisfied the educational requirements.
MFAA CEO Phil Naylor said the organisation was pleased with the results.
“We are delighted that the number of complaints against our 10,000 accredited credit advisers are dropping to very low levels as a result of ASIC’s and our stricter controls, educational requirements and disciplinary systems,” said Naylor.
“The vast majority of our members are totally professional in the way they operate and evidence of this is the fact that the mortgage broking industry now provides 46 per cent of the total mortgages provided in Australia.”
The tribunal reported that the stronger enforcement procedures put in place by ASIC, the impact of a stronger MFAA governance regime and the continuing improvement in excellence of mortgage brokers should continue to lower the number of matters placed before the tribunal over the next couple of years.
The tribunal’s report notes that the majority of 20 new matters referred to it during 2013 emanated from NSW and Victoria, followed by Queensland, Western Australia, with one from South Australia and none in Tasmania, ACT and Northern Territory.