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ASIC tells brokers to beware 'adviser' title

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Australian Broker | 21 Sep 2011, 06:00 AM Agree 0
Brokers should be careful before branding themselves as advisers, and ensure the term accurately reflects their business model, ASIC has stated
  • countrybroker | 21 Sep 2011, 10:46 AM Agree 0
    Ok,ASIC have said what they are saying , where does this leave the members of the MFAa who have "Credit Adviser " status , ( I have this) , Perhaps the MFAA will need to rethink their recognition programme and develop different terminolgy for their development/recognition,
    programmes! thne term Credit Adviser surley is not confusing to the public.
  • Michael | 21 Sep 2011, 10:54 AM Agree 0
    So where does that leave the MFAA who have told us that we were previously "Accredited Mortgage Consultants' and are now "Credit Advisers"?
  • Philip@HLG | 21 Sep 2011, 10:56 AM Agree 0
    How does this sit in relation to the MFAA issuing the accreditation for "MFAA Credit Adviser" to its members?
    Why can't we call ourselves Credit Advisers if we have met the requirements? Is ASIC even aware of this? The MFAA has been promoting the accreditation process for some time now.
  • Robert | 21 Sep 2011, 12:16 PM Agree 0
    Firstly a Mortgage Broker is also an "Advisor".If you look at the Dictionary 'Broker' also refers to 'Adviser'.A Mortgage Broker should in fact must give some proper advice to his/her clients and hence nothing should be wrong if the "Broker" is called as an "Adviser".
  • petert71 | 21 Sep 2011, 12:36 PM Agree 0
    A good broker will give clients 'credit advice' by considering their credit needs and making recomendations to meet those needs appropriately. Some also hold and AFSL and will provide 'financial advice' to some clients. Anyone already doing this competantly will be educating the client about the distinction and that they are two separate hats to be worn.
    In a nutshell brokers holding an ACL or reps status should be able to operate as 'advisors' as long as they're giving advice they're qualified to give.
  • Paul Eldridge - CEO Intellitrain | 21 Sep 2011, 01:43 PM Agree 0
    Storm in a tea-cup. ASIC are saying but they would have to be very careful to ensure that they were not holding themselves out to be an adviser in a way that implies they are able to advise on financial products such as investment products (shares and MISs) or insurance.

    So as long as you dont purport to be offering Financial advice on these 'products' then there is absolutely nothing wrong with you calling yourself an advisor.
  • judy west | 21 Sep 2011, 04:24 PM Agree 0
    Why not use the term 'Mortgage Adviser'?
  • Sally | 21 Sep 2011, 11:38 PM Agree 0
    MFAA want Brokers to use their "Credit Adviser" status, but once again it just confuses everyone. They are only words when it comes down to it, so why didn't they use words that don't have double meanings. Jon Denovan, stop sitting on the fence. Admit that MFAA have made another mistake here. Your quote that it depends on their business model is ridiculous. MFAA are only concerned with Finance/Mortgage Brokers not Financial Planners. Why don't Brokers put "queen bee" on their business card? It has the same importance to a customer. This is ego tripping at best. Just do a good job and forget your title. If you have to rely on an MFAA tick for credibility, God help your customers.
  • WhistleBlower | 29 Sep 2011, 10:52 AM Agree 0
    Oh God, this is sooo easy.

    Anyone who flogs/sells mortgages should simply be a 'Credit Representative'.

    Why? because the term 'Broker' implies impartiality, and lets be honest, like so called Financial Planners (an oxymoron if ever there was one) brokers are NOT impartial; they sell a narrow set of mortgage products usually from 1 to 3 preferred lenders, so 'brokering' simply doesn't exist..... show me a mortgage broker writing loans from all the lenders and I'll show you a broker who's not building any relationships with any lender.

    Like most arguments (and Wars) the first casualty in this whole debate has been honesty.

    Sally puts it best "Why not just put 'Queen Bee' on their business card?... " Actually Sally, that's the best idea I've read in here for ages and it manifestly reiterates that everyone should play their own game and stop bothering about what either ASIC or the MFAA think, besides, the MFAA is just another company like yours, it's here to make a profit, and as for ASIC, well they don't really care, it's all about the APS career, superannuation, entitlements and leave loadings.
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