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ASIC declares open season on dodgy brokers

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Australian Broker | 11 Dec 2013, 11:10 AM Agree 0
ASIC has permanently banned two Sydney-based brokers and one former mortgage broker while announcing the conviction of another.
  • Harry Myers | 11 Dec 2013, 11:41 AM Agree 0
    We can all sleep well at night knowing ASick is on the job. One day they might even catch a big fish.
  • Observer | 11 Dec 2013, 11:41 AM Agree 0
    What an irresponsible and sensationalist headline. Obnviously designed solely to draw the email recipient to the website. Where has ASIC said that it is declaring open season on brokers?" The headline implies that the brokers concerned were somehow not due the penalties they are to suffer. ASIC is often accused of being asleep at the wheel but what reasonable person could excuse the behavious of these people?
  • Consumer Observer | 11 Dec 2013, 11:43 AM Agree 0
    The headline misrepresents ASIC's actions and implies those who were prosecuted were unfortunate targets of unwarranted regulator enforcement. The broking industry should be pleased ASIC is doing its job - taking action against those who break the law and bring the industry into disrepute.
  • Country Broker | 11 Dec 2013, 11:48 AM Agree 0
    The head line is misleading , open season is there only on brokers who are committing fraud !!!! As a broker I have no concerns about ASIC doing this , get rid of these comedians out of our industry !!! One thing we never hear about the actual applicants surely they needed to sign the applications , where are they in all this , have they been looked at and charged if they were party to these transactions?
  • not so old broker | 11 Dec 2013, 12:06 PM Agree 0
    Gee Harry, hope those little fish didn't catch any of your clients or relatives. I'd rather ASIC catch little fish than no fish at all.
    What is a 'Big Fish' fraudulent broker actually? To whom are you referring?
  • Aarong | 11 Dec 2013, 12:08 PM Agree 0
    We all hate actual criminals in the industry. The thing is that fraud was always illegal, even before Asic took over the industry. It seems to me that many people don't realise this. I'm loathe to say I'm happy that Asic is doing this as this really should only be done by the federal police and Asic never should have been involved in the industry at all. the Mortgage Choice ruling is a pretty good example of an inadvertent mistake or just a slight stretching the marketing bounds a little (ever see what a car commercial or a household cleaning commercial promises?). The suspended broker for 6 months was a bonafide inadvertent mistake. I know the difference is that there isn't any prison time here, but they were both still punished. My problem is that when criminals are punished for actual fraud, like in this case, people might conflate the issue of punishing criminal behaviour with regulating and industry and it strengthens the argument that the NCCP is somehow a good, when it actually is a terrible. Yes, they might put actual criminals in prison today, but tomorrow they might actually do the same to you for putting a comma in the wrong spot in a preliminary assessment. I don't think anyone should rally around this one example for a justification of the entire Asic takeover of our industry.
  • GC | 11 Dec 2013, 12:09 PM Agree 0
    Why is ASIC taking credit for the "capture" of this slime. The successful investigations would have been instigated by the lenders - not ASIC. If the banks werent being vigilant and the fraud dept. wasnt doing their job then ASIC would still be sleeping. The bnaks have in the past been very successful in discovering fraudulent activity. Why is ASIC taking credit for this?
  • mac | 11 Dec 2013, 12:34 PM Agree 0
    Poor ASIC The banks really have them and us by the short and curlys don't they. ....We are effectively the only ones being regulated. I would like to know how many bank employed staff (credit reps) have been disqualified since the NCCP was brought in? Any ASIC? If none why none? Do they believe there have been no bad applies in the proprietary channel at all?

    The problem is ASIC has no intelligence gathering ability apart from what they are told by the lenders! The same organisations ASIC are meant to also be regulating. Has any bank referred any of their own staff to the regulator for similar cases of fraud?? Let alone run of the mil breaches of the NCCP?? NO and NO.

    If ASIC is serious about their role being a protector of the consumer and enforcer of the NCCP Act how can they not have disqualified a single bank staff member.

  • Rocket Scientist | 11 Dec 2013, 01:09 PM Agree 0
    Hang on - doesn't ASIC make running shoes?
  • L3nder | 11 Dec 2013, 01:27 PM Agree 0
    There is never any excuse for falsifying documents. People doing it in the industry should be prosecuted. That being said,lets get brokers out of the market and consumers can provide lenders with misleading information directly. Since lenders seem imune to the NCCP, that should free ASIC staff up considerably.
  • New broker | 11 Dec 2013, 01:58 PM Agree 0
    ASIC should do the same with bank branch lenders. Had a couple who I had to turn away as they just could not borrow the money that they were looking for and next day he rang to say he went into branch and they approved the loan straight away deleting his kids and the wife.
  • Denise Brailey BFCSA (Inc) | 11 Dec 2013, 02:00 PM Agree 0
    I have tried to warn the industry of ASIC's suggestion: Kell said, ‘Attempts to falsify loan documents and loan applications will not be tolerated by ASIC." So why is ASIC protecting the banks by not prosecuting the credit assessors where 36% of all falsified loans are via bank staff and not a broker in sight? Why is that Mr Kell? Please explain that one to the broker industry whom you seem bent on tarnishing 97% of brokers and whom you agree with me are doing the right thing. Weed out the credit assessors first please.
  • Dan Isaak | 11 Dec 2013, 04:36 PM Agree 0
    This is so upsetting to see headlines like this. I must say i am occasionally embarrassed to say I work within the financial services industry. It doesn’t fill me with pride. These headlines create such a positive spring board for the industry to be proud of lol.. "not".
    I feel many of these ASIC prosecutions should be played out using more discrete methods. It doesn’t fill the everyday consumer with confidence to use the services of a mortgage professional anymore. Every individual, be it broker, bank staff, OR advisor,, found to have been involved in such unethical conduct, not only should be prosecuted by ASIC, but there after referred straight to the police. It is such a shame that after all the changes and education implemented within the industry, we still see clear examples of non compliance. It talks volume about their own personal lives. If anything they should write a book, “10 easy ways to become jobless”. It’s disgusting that people still find ways in bringing our industry into disrepute. It makes the sensible operators out there to work so much harder, to the point i honestly feel that many good individual woman and men within the industry will be lost, leaving to seek greener pastures not wanting the burden & stigma that comes with the job.
    To all the idiot idiots within the industry, hang your heads in shame guys,,, you are all dumb, simple as that. However, to all the banking staff that writes the loans, you’re not forgotten. You too should put greater emphasises when writing risk, most of is called common sense. The industry doesn’t want you either, bluffing your ways into positions you’re not qualified to fill, and you know who you are. Don’t use excuse that you are under ridiculous sales targets, because if you do, maybe it’s about time to hit your bank bosses up & let them know that you won’t stand to risk yourself anymore being part of the problem, because you and your superiors hold some responsibility also. I don’t recall the last time I seen a bank vault locked, so why don’t you guard the very money within it that your lending? And without naming names, industry players that feel they cannot comply should just leave with dignity before you find your name on a front page. The industry is too small and unforgiving. To all the good people out there, keep up the good work//
  • Bank Employee | 12 Dec 2013, 02:57 PM Agree 0
    The banks handle compliance internally, and to be honest, the team of lenders I manage, would never engage in such activities, or they would be ex-employees.

    In fact bank employees are helping to identify such issues. Recently, a branch lender told a couple, that they did not meet servicing criteria, but weeks later, the couple came in to tell the employee that a broker had gotten the loan approved with us... we looked at the application, and the wife had mysteriously gone from home maker, to having a full time job with a bakery (for over 2 years).

    I am not saying this doesn't happen internally, however: Our staff are working in a supervised environment, secondly they are less motivated to 'get it through at any cost' because sales based incentives, are a bonus to them, not their sole source of income. Thirdly, it's not worth the risk for them, if a customer told us that a staff member even suggested such a thing, that staff member would have a very swift departure.
  • Jane | 12 Nov 2014, 01:38 AM Agree 0
    There is a broker I am aware of that asks for online banking passwords of clients repeatedly without batting an eyelid.
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