Industry must help ASIC weed out dodgy brokers

by Adam Smith08 Jun 2012

An industry figure has claimed associations must aid ASIC in weeding out dishonest brokers.

Following a three-year ASIC ban dealt to Victorian broker Ravind Prasad, MFAA chief executive Phil Naylor has told Australian Broker that the mortgage industry may be too large for ASIC to effectively monitor, and that the regulator will rely on the disciplinary processes associations already have in place.

“I think the magnitude of the industry is such that ASIC is always going to have to rely on us to provide them with details of our disciplinary process. They make their own decisions, of course, but I think it's good that we have an organisation carrying out the role we do,” he said.

In the case of Prasad, Naylor said the MFAA provided information of its disciplinary proceedings to ASIC.

“Under our constitution we have to provide that information to ASIC, which we did. Now, whether that alerted them to the situation or whether they were already carrying out their own investigation I don't know, but I suspect that our decision may have alerted them to the problem,” he said.

With the association actively working with ASIC to purge the industry of unscrupulous operators, Naylor said brokers who choose to operate dishonestly should be put on notice.

“The simple message here is this guy was dishonest, and we cannot have dishonest people who are in positions where they are advising consumers on credit. We've always worked hard to weed dishonest people out of our organisation, and we will continue to do so,” he said.

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  • by Old Country Broker 8/06/2012 9:42:31 AM

    All for it - we don't need these cowboys tarnishing the industry for everyone else. Why they are at it though, let's not forget the dodgy bank staff in lending roles. Lost count of the number of times I have seen clients that don't fit a particular lenders policies only for the local branch to somehow write the deal. For some reason we never hear about this??

  • by Country Broker 8/06/2012 9:59:01 AM

    I Agree with the comments from old Country Broker , some bank staff are just plain wrong !

  • by Incognito 8/06/2012 10:07:18 AM

    Come on haters, start laying into the MFAA on this.

    Don't let them get away with it!!

    (Not serious - just having a shot at whinging brokers hehehe).

    Get back to loan writing. It's almost the weekend :-)