Compliance not that bad, say brokers

by BN23 May 2012

Australian Broker's online readers say that getting their compliance documentation right is not the headache that others in the industry have claimed that it is.

Following an Australian BrokerNews TV report which showed that some brokers have seen impacts on their business - and have even turned clients away - others say they are coping fine.

Online reader Country Broker (21 May 2012 10:55 AM) said using CRM software that populates all of the disclosure documentation is "not that difficult".

"The system if it is a good one should generate all that you need to give the client ready for signing automatically. I am not that technically minded and I can do this and do not find it a burden," he said.

Ken Crawford (21 May 2012 11:10 AM) agreed.

"The documents used now, apart from some changes to the logos, are very similar to those I was using immediately prior to NCCP," he explained.

"Yes, the privacy document (Credit Guide) might be longer, and yes there can some repetition between Credit Assessment and Credit Proposal documents, but in the main I am taking the same time to do my interviews as I always have."

Steve McClure (21 May 2012 05:11 PM) said if compliance documents are taking too long, then it may be that a broker's forms are poorly constructed.

"ACL holders have to take responsibility for that. But really, turning away clients because of compliance obligations?? Send 'em over," he said.

A Broker (22 May 2012 09:02 AM) said that salespeople are traditionally poorer at doing paperwork, and that perhaps an individuals own work practices may be to blame than the documents themselves.

"Sure, they're an extra layer of complication, but they take perhaps 10 minutes to produce. If brokers are finding that these documents are taking up that much time, maybe they need to hire an admin assistant to free them up from paperwork, thus freeing them up to sell?" he suggested.

Related stories:

Red tape: Brokers caught in compliance trap


  • by Content Broker 23/05/2012 9:54:18 AM

    It is definitely not that bad, if you have a good system in place and look for improvements in your process then you will be fine. For those brokers who have been in the industry for a long time, we had many years where we just filled in the applications forms, and a couple of other broker forms, then it was off to the bank. Yes I think that maybe the compliance documents need to be more streamlined as there is a lot of double up, this will happen in time. I am very happy with my Aggregator's Software Package and I know that they are always trying to improve it for the benefit of brokers.

  • by Julia Swanee 23/05/2012 9:57:35 AM

    Are the "brokers" mentioned in the article saying that they prefer the extra time spent on NCCP paperwork, storage requirements and legal ramifications/mitigations? Are they masochists, or perhaps not brokers at all? Aggregators, brokers .. keep lobbying.

  • by Aaron Greffenius 23/05/2012 10:49:19 AM

    I find it hard to believe that brokers are out there saying that the new compliance regulations are no big deal. What used to take me half an hour to do now takes almost 2 hours. This isn't due to any lack in my skills as insinuated by one of the respondents. I'm actually quite fast at it, but I'm as meticulous as the legislation requires and its a lot of duplicity. Sure, the aggregators current software can help, but if its all duplicate information anyway, why can't we just say, "refer to the application, as all the inforamtion is already in there"
    I have four main problems with the new regulated climate: 1. Why was it nescessary at all since we didn't have the high mortgagee possession rates experienced abroad? If this is the solution, what was the problem? 2. The basic assumption was that dodgy brokers couldn't operate in the environment. This assumes dodgy operators can't do paperwork. The opposite is true and that was an incredibly niaive assumption. 3. Instead of helping consumers with more safer choices, it simply lead to fewer choices and weekly we hear about more products being pulled and policy tightened. How does this help when we in Aus didn't have the mortgage problems experienced abroad? 4. And lastly, why are brokers being forced to act as credit officers? I haven't heard one good argument why a broker should have to do a preliminary assessment, considering every deal is assessed by the bank who is actually lending the money. We are supposed to knock deals on the head based on our criteria when a bank might be happy to do the deal? Ridiculous, and it showed a complete non-understanding of our service based industry. The real reason for a brokers existence was proper product matching for clients and doing the admin for them. Why is just that role suddenly not good enough? Now I'm have to be a credit officer?!
    The thing about it is that as bad as it is, it will only get worse. Regulators tend to regulate. New regulations will come down, not fewer and our customers will have fewer and fewer choices. Can anybody tell me 1 good reason for this to happen at all? Just one?