'Rotten apple' brokers down 50%: MFAA

by AB09 Aug 2013

The numbers of mortgage and finance brokers expelled from the MFAA dropped 50%, from eight to four during the 2012/2013 financial year, according to CEO, Phil Naylor.

The MFAA also suspended six members, two of whom were late expelled, after being found by the MFAA’s Disciplinary Tribunal to have engaged in serious misconduct.

“We are pleased with the result, as it demonstrates the MFAA’s determination to ensure the highest professional standards of our members, as well as strict and independent disciplinary procedures and very high education standards,” says Naylor.

The MFAA has a set of disciplinary rules to deal with complaints of alleged misconduct against an MFAA member, initially involving an external investigating officer, who then may refer the matter to the MFAA Tribunal. The MFAA Tribunal has the power to impose various sanctions on a member for misconduct, including expulsion from membership of the MFAA.

Naylor says mortgage and finance brokers, who now provide around 45% of mortgage in Australia, have adopted a higher standard of professional conduct since the 2011 introduction of NCCP.

“The MFAA will continue to be diligent in the new financial year to enforce strict rules on our members to ensure they deliver the best possible service and customer protection. We expect that mortgage and finance brokers will continue to grow their share of the mortgage and finance market over the next year, while MFAA will continue to be vigilant in weeding out the very few rotten apples in the industry.”


  • by Country Broker 9/08/2013 9:11:37 AM

    4 down from 8 is a very low number considering the number of members who belong to the organisation, no mention though of those who had membership cancelled because they failed to complete their diploma on time . I think the standards of the MFAA are very strong and I am happy to remain a member.

  • by Noel 9/08/2013 9:22:55 AM

    Not all issues are advised to the MFAA as they are NOT the governing body. ASIC recently said that they have a number of issues which they are currently investigating. And its a lot more than 8.

  • by SIDBROKER 9/08/2013 9:24:52 AM

    By now it should be zero.