Brokers have been urged to 'bail out' of any transactions they are pursuing for clients who they suspect of not being 100% truthful.
Speaking with Australian BrokerNewsTV, Connective principal Mark Haron said going above and beyond existing NCCP law will ensure brokers don't find themselves 'in trouble'.
Haron suggested keeping more thorough file notes and regular communication with customers was key, to ensure all details are documented and any issues are dealt with as they arise.
However, he said brokers should not hesitate to drop a deal if their client is suspect.
"I see too m any brokers caught out in these actions by customers where the customers haven’t always been honest and truthful," Haron said.
"If you feel concerned that the information the clients has given you is not 100% correct, or they perhaps are not being 100% truthful, clarify that, keep good file notes on it, and whenever necessary stop doing the transaction, and advise the lender you are dealing with as well straight away."
Are you concerned about your compliance obligations? Listen to the full Australian BrokerNewsTV segment, featuring Steve Patterson of SAKS Consulting and Phil Naylor of the MFAA.