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ASIC doesn't understand us, claim brokers

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Australian Broker | 07 Dec 2015, 08:00 AM Agree 0
A recent poll revealed that almost nine in 10 mortgage brokers think ASIC does not properly understand the mortgage broking industry
  • Neil Williams | 07 Dec 2015, 08:56 AM Agree 0
    Who would have thought? A disconnect between regulators and brokers. Attacking the banks is too difficult for ASIC. So, hit the brokers with slurs of poor practice and self-interest, etc. We have heard it all before. The broker industry is doing something right. Our share of business exceeds the lenders direct channels. Play on.
  • John | 07 Dec 2015, 09:23 AM Agree 0
    As the songs states, the times are a changing? Branch land is dying a slow death. Customers want service and someone who will work with them?

    Work hours have changed, so the customer want someone who is flexible, not someone from branch land telling them, I can see you in 2 weeks time at 2.00pm?

    ASIC, if they really want to help, be more flexible and ask questions of brokers, don't assume, because one day you will go to far and someone just might take you to court, for a derogatory remark
  • Oscar Hvala | 07 Dec 2015, 09:24 AM Agree 0
    If it's believed that ASIC does not understand brokers, then this is a perfect chance for them to learn. Let them check us so they can understand the challenges we face. IMO, they may soon discover that there are issues with the lenders' branch staff and how they operate in comparison to what we do. They are doing a full review and must check all sides... Let them go for it. Maybe it'll help squeeze out those remaining shifty brokers there too.
  • Bob La'Frenais | 07 Dec 2015, 09:53 AM Agree 0
    The world as we know it was built on people knowing and taking risks. Investment always has an element of risk. The involvement of Bureacrats in controlling how people should invest will only result in no investment. ASIC should not involve itself in the detail process of Lending. Banks and Lenders should be allowed to calculate their own risk without ASIC telling them what is an acceptable risk. Honesty, Integrity are the issues that ASIC should focus on ensuring that the Banks /Lenders provide detail factual information. Borrowers should be allowed to decide themselves if the Loan is what they want and if in doubt then seek professional guidance. The more Govt Involvement we have the less business we will do. We have already seen how may investors have been unable to develop their property which they have purchased years ago with the principal objective to develop and use the proceeds to fund retirement. However when they get to that stage they are unable to raise the funds to develop as they have no income only assets. The only way for them to raise cash is to sell the asset they want to develop.
  • Broker | 07 Dec 2015, 11:11 AM Agree 0
    It is time that our Aggregators, the MFAA and the FBAA grow some collective balls and arrange a month of daily meetings to get it through to the thick-heads at ASIC as to how the broker industry functions after 25 odd successful years.
    We as Brokers pay these organisations above to represent us and hopefully provide some certainly and obtain some clarity from lenders, as to where this industry is headed, and given the ASIC agenda of late it appears that they have failed miserably and continue to do so.

    It is still an us against them mentality with far too many brokers worried about their long term futures in this industry, we know the lenders are all collude when it comes to screwing their customers, so will we as their “’valued business partners” be treated in the same fashion after the ASIC witch-hunt, well the banks certainly hope so.

    This ongoing uncertainty re our remuneration levels, fuelled by the stupidity that is ASIC is just not good enough, but you can bet the lenders will be enjoying this.
    And we wonder we new entrants are turned off this profession, the answer is very simple – no effective leadership and no direction whatsoever.
  • Broke Broker | 07 Dec 2015, 11:27 AM Agree 0
    Otto Dargan how can you seriously believe ASIC are doing a good job? They should consult and work with brokers not the other way around. For how many years have clients paid Private School Fees and also managed to repay their Mortgage? Do you have default rates of these clients? Again I emphasise what is 'discretionary' funds that a client has available? Is it up to us and ASIC to say we don't like your discretionary use of these funds therefore you cannot have a loan? This is unreasonable and not a balanced approach and this is certainly not 'responsible' lending. This is a dictatorship. You are stepping way over the line like ASIC is.
  • daryn | 07 Dec 2015, 01:22 PM Agree 0
    We must be the only industry that has not had a payrise in 10 years. In fact, during this time, brokerage has been reduced. With inflation, we are earning less as a result. Add to that clawbacks up to 2 years after we are paid and once again, I am not sure how many industries have salaries clawed back for doing work 2 years ago. Finally, if we are not charging clients, I find it amusing that ASIC want to investigate the income we earn. Why would this concern ASIC, especially if it is not costing the client anymore? Also, ASIC need to understand that interest only loans are products offered by banks and the brokers are facilitating the transaction if they deem that is in the best interest of the client. I have heard that ASIC think brokers are offering interest only loans so clients can service a higher loan amount. Given the banks calculators work off a huge buffer based on P and I repayments, I think clearly ASIC do not understand this industry at all and it is up to MFAA and their new lobbyist to put them straight. Those at ASIC can work their 9 - 5 and go home. They have no idea how to run a business, the 15 hour days and the costs and complexities and I find it insulting that they want to investigate how much I earn when I do not even charge a client for my expertise.
  • Oscar Hvala | 07 Dec 2015, 02:25 PM Agree 0
    Based on some of the new comments, it seems like many brokers don't get it. ASIC is trying to understand our business hence the enquiry. I say, open the books and let them make their enquiries, warts and all. And as per NCCP, brokers must give customers the the choice of lender according to client requirements NOT who is paying the broker more in upfront comms. Clawbacks is part of the game as I'm certain ASIC will see this as per advice from the Associations. If balance is present, I'm certain ASIC will not force changes. If there is inbalance, certainly changes will be recommended. But first, let them due their investigations into the industry.
  • Dave Robinson | 07 Dec 2015, 05:47 PM Agree 0
    And the industry wonders why it can't attract new brokers!?
  • John C | 08 Dec 2015, 01:53 AM Agree 0
    ASIC has never understood the broking industry. They are at the behest of the major corporate entities such as the major banks and financiers. You never see a major corporation getting its knuckles rapped, yet the small financially defenseless business cops the flak and fails to defend because they don't have the money or resources to fight. No, ASIC, doesn't have a clue unfortunately.
  • Marty mcdonald | 08 Dec 2015, 08:14 AM Agree 0
    I just hope it's not a witch hunt with a pre determined outcome or bias in place. The life insurance / planning industry was blind sided by their equivalent enquiry don't forget. Anyone not familiar with this please google Trowbridge then you will see we have every reason to be concerned.
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