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ASIC restricts broker usage of the word 'independent'

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Australian Broker | 05 Dec 2012, 06:30 AM Agree 0
ASIC has issued a warning to brokers that, as of early next year, the word "independent," if used incorrectly, could land them in trouble
  • Maria Rigoni | 05 Dec 2012, 10:35 AM Agree 0
    My finance broking company is 100% "independently owned" by my husband and myself.
    ASIC can check the verification of this statement anytime on their Company Register.
    For the NCCP or ASIC or anyone else to say that my business is not INDEPENDENTLY OWNED and that I cannot publicly advertise that fact is misleading and deceptive.
    Any loan writer that does not have a direct remuneration contract in place with a particular lender is an "INDEPENDENT" contractor. They are not a staff member or agent of the lender. They merely hold an accreditation that demonstrates they have been trained by the lender in the lender's individual product and approval criteria and they are able to be tracked for volume of loans introduced so they can be discriminated against if they do not favour the accrediting lender.
    The commission is not paid to the independent contractor it is paid to the aggregator for the introduction of NEW BUSINESS by the aggregator... it is not payment for the outsourced lending tasks... brokers do this ex-gratuitous...
    The "COMMISSION" paid by the aggregator to the INDEPENDENT Contractor is GROSS BUSINESS TURNOVER that expenses have to be deducted from before wages can be paid!!!
    How does ASIC expect INDEPENDENT CONTRACTORS to be paid and remain solvent - charge the borrower.
    What a great outcome for Australians!!! The worker and the public.
  • PeterT | 05 Dec 2012, 10:38 AM Agree 0
    There should be a pre-requisite to being employed by ASIC, that anyone who comes up with this stuff should have previously run a small business.
  • Larz | 05 Dec 2012, 10:48 AM Agree 0
    Welcome to the new world of ASIC where someone can trade under a name for twenty years and build a brand and all the benefits that go with it only to be told that they have to change it due to some stupid decision by misguided public servants seeking to please their masters in Canberra.
  • ian | 05 Dec 2012, 12:02 PM Agree 0
    Using this rationale, how can ASIC claim to be an independent regulator when they receive all their income from the one source, namely the Government who raised the money by taxing the individuals ASIC are set to regulate. Therefore it could be held that they need to justify their existence to continue to receive funding. They do this by creating a framework of regulation that the average punter has to adhere to or face the wrath of yet another department. I used to wonder where the additional 20,000 public servants that have been employed in Canberra since 2007 have been hiding, the answer seems to be that a large portion of them are obfuscators working for ASIC.
  • Positive Broker | 05 Dec 2012, 03:33 PM Agree 0
    Gobsmacked about this witch hunt around the word independent. Does this apply to independent petrol stations? independent tyre retailers etc. I just don't see what the big deal is. All commissions are disclosed and I am positive 99% of brokers would never place their interest ahead of their clients. What ASIC fails to realise is that my clients are my most valued asset. Why would I screw them over?
  • Vast | 05 Dec 2012, 04:34 PM Agree 0
    we can say "we not dependent" though. just a word game.
  • Broker | 05 Dec 2012, 04:55 PM Agree 0
    I don't think that ASIC would have this agenda under a Liberal Government, the stupidity that has comes out of Canberra for the past few years insults general public’s intelligence.

    This just confirms what a useless & wasteful rabble this current government is, roll on November 2013 , so we can send to the scrapheap.

    No wonder we are taxed out of existence, as we have to pay these imbeciles to come with crap like this.

    The clever country , we used to be!!!!!

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