'Screws tightening' on brokers as FOFA encroaches: White

by AB08 Aug 2013

With the FBAA’s national conference fast approaching, FBAA president, Peter White, says compliance issues will be a hot topic at this year’s event.

“It’s important that we all keep focus on our compliance obligations at all times…They’re still relatively new, July 2010 they came into being, so people are still juggling with these obligations to make sure they’re doing the right things. And we still see it today, where people who have been in the industry five, 10, 15 years…we still find people who are struggling with these obligations.”

When it comes to the up-coming privacy and responsible credit reporting changes, White says there will be ‘significant’ impacts to the ways brokers deal with information given to them by clients - and that staying on top of these changes will be critical.

“We, ourselves, are still working through it with our attorneys. There are going to be some significant impacts from the Privacy Act point of view and how you interact with information that you have on behalf of clients and who you give that to. Even though some of these obligations are a part of our business today, the screws are really being tightened up.”

Finally, White says many brokers need to start thinking bigger and developing long-term strategies in case further legislation is brought in.

“It’s very easy to sit back and just do what you do every day and not worry too much about the future, but I think it’s something that we’ve got to be very conscious of. We can see the FOFA reforms that are impacting into the financial planning sector and we’ve got to be careful that those things don’t necessarily mirror across - and it could well do. Fee for service is used by many brokers at the moment and it could well be that everybody needs to have a plan B in their pocket if those sort of reforms come across into our sector.” 

To watch the full interview with Peter White, Click Here

COMMENTS

  • by Peter Fast 8/08/2013 10:08:23 AM

    Fee for service right now is dangerous. Just think about it. You get paid by the lender and you want the client to pay as well !! That is great ammunition for those out there to do to the mortgage industry what they have done to financial planning - destroy it. If you charge a fee for service keep driving the nail in your own coffin but do this please, let your clients know there are other brokers who are fair and don't need to be paid twice.

  • by Cecil 8/08/2013 10:33:27 AM

    As someone who has practiced fee for service in the financial planning area for some time the concept of fee for service in the finance area worries me. It would play into the hands of the majors who have a strong lobby in Canberra. Loans, like tax can be very transactional as online or in the bank arena. People, however, benefit from time one on one with advisors (independent??). Funding this on a fee for service basis has many obvious problems not the least asking people to part with their hard earned. Like our erstwhile leader's bungle on FBT recently. There is a great deal more to this than sitting in an office in Canberra and looking at a set of numbers - never having sat one on one with a real person!

  • by Old Broker 8/08/2013 11:03:48 AM

    Peter fast
    Yes you are correct in the view that 'fee for service' may cause the industry to be further legislated
    However ''fee for advice' if you market yourself as more than a broker who simply transacts the loan for the client and sells the bank concept of lowest interest rate
    Then ' fee for advice' becomes something to consider. Your experience -for me over 17 years has surely taught you something and smarter ways to advise clients. This information and experience is of great value and shouldn't be given away for the commission a bank pays which is really only a processing fee.
    So it depends on which broker you are?