Mortgage brokers do not require higher education, according MKM Capital's Michael Watson.
Following MFAA calls to eventually implement a higher education requirement for the mortgage industry, Watson said that current levels of education are more than adequate.
"It’s my view that a higher education requirement is unnecessary in mortgage broking," he told Australian Broker.
"Until recently we have enjoyed years of boom times in broking and lending. This has been followed by tighter regulatory controls courtesy of the NCCP and tighter funding parameters.
"This has been sufficient to discipline the industry. Market forces will ensure that only those brokers with honesty, integrity and knowledge succeed."
Watson said that education for the sake of education is not desirable; instead, he said it is in place to ensure that brokers can impart knowledge responsibly and accurately to consumers.
Watson has also warned that unless a course is hard to attain, it won't gain credibility.
"My view may be different if I had confidence in the learning outcomes on offer. I have only had first-hand experience at Cert IV level. However, I have to ask what they are actually teaching at Cert IV level? What is being transferred in the transaction - knowledge, or simply fees?
"Let me ask the question a different way: Will those who learnt anything completing their Cert IV please stand up?" he said.
Uneducated brokers not taken seriously