Leave brokers alone: Association calls for no new regs until 2016

by Mackenzie McCarty18 Mar 2013
“We’re saying it’s better to hang off and see how the current NCCP is working before you propose more regulations. There’s a danger in over-regulating - people just won’t lend.”

 Naylor said making ‘private’ loans subject to the National Credit Code will also discourage private lenders from using intermediaries, most of whom are licensed finance brokers. 

“This will result in ‘private’ investors being exposed to greater risk of loss, and encourage the market to operate outside the law.  We believe a better regime should require intermediaries who arrange private loans must be a licensed credit representative and subject to external dispute resolution.”

The MFAA’s submission also opposed the planned regulation of investment lending because the wide scope of this move would have a range of negative and unforeseen consequences.

“Our primary concern is that bringing this type of lending within the ACL (licensing) regime may reduce the availability of finance and reduce competition.  This would limit the scope for consumers and businesses to attain the appropriate loan suited to their needs”.

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  • by NoTimeLikeTheFuture 18/03/2013 10:37:40 AM

    MFAA a waste of money eh?

    Personally I prefer to have the MFAA representing me to Government.

    Besides the banks nobody speaks better Canberran in our industry than MFAA. Nobody

  • by Broker 18/03/2013 10:37:52 AM

    Why bother, have Treasury ever listened to anything that the MFAA has rasied before?

  • by Lyn Turner 18/03/2013 4:14:07 PM

    Once again - too little, too late. Unfortunately, Minister Shorten's idea of consultation is to have everyone spend masses of time and money making submissions non-stop for 2 years - so they can say they have "consulted" with industry - but without any intention of listening to anything the industry says.