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Aussie slams ‘shredding’ claim

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Australian Broker | 28 Sep 2012, 08:00 AM Agree 0
Aussie has hit back at ‘shredding ’claims made yesterday in The Australian, telling Australian Broker Online the story was “totally misguided”
  • overthrborderbroker | 28 Sep 2012, 09:44 AM Agree 0
    Hmmmmm I thought that even as intermediaries we all had to keep files for seven years before destroying. Have I missed something???
  • Stephen Dinte | 28 Sep 2012, 09:59 AM Agree 0
    As the Chair of the Steering Committee for the Independent Finance Brokers Forum, I have today sent an email to Phil Naylor asking that the MFAA should investigate this allegation and determine if any of the Associations rules have been breached, and if it is proven that Aussie have breached MFAA rules, what disciplinary action will be meted out. Prior to NCCP there was always a legal requirement to retain documents for 7 years (statute of limitations), 20 years for statutory documents and 6 years under tax law. This action by Aussie casts the whole industry in a bad light.
  • Country Broker | 28 Sep 2012, 10:25 AM Agree 0
    This is typical of a misguided press beat up by a paper owned by Murdoch, even if the brokers did shred the applications the lenders must have their copies , I doubt if any directive came out Aussie at all they are not that unprofessional , no broker / aggregator/ mortgage manager is, if the journalist had thought about it they should know the lenders have to keep copies !! I hope Aussie seeks a solution in the courts if they can.
  • Opinion WA | 28 Sep 2012, 11:40 AM Agree 0
    Wow, guess who's Legal & PR Depts will be working overtime this weekend.
  • Hank | 28 Sep 2012, 11:40 AM Agree 0
    Does anyone have a definative ruling from ASIC regarding brokers retention of files? We have been advised second hand that ASIC regard our records as the preliminary assessment & supporting documents & the 7 years commence from when the client agrees for the broker to suggest or assist in the provision of credit??
  • Wilko | 28 Sep 2012, 12:48 PM Agree 0
    Stephen Dinte - This is outside your jurisdiction and you should pull your head in big fella. It is Aussie's business and guess what, if it is something they have done then they have done so for a reason in good faith and for good reason and there is every chance that a tonne of other brokers were doing the same in the industry. I say this because I know their compliance and risk regime and it is better than most.

    If you are clear on what the rules are then please enlighten us as there are questions being raised right now by all brokers who are confused. If we are all confused then there is obviously guidance required.

    Your rubbish witch hunts only hurt everyone not just someone you obviously have a vendetta against.

    Transparency please sunshine.
  • Jason | 28 Sep 2012, 01:03 PM Agree 0
    Think there may be many brokers across the entire industry in this camp pre NCCP so the industry bodies should clarify for us all!
  • Coast Broker | 28 Sep 2012, 01:22 PM Agree 0
    Stephen Dinte is correct. He is not on a witch hunt. Sorry if Aussie have done wrong they need to be held accountable and be dealt with correctly. If you are a Broker and do everything correctly there should be no need to worry. Poor excuse for Aussie to say that they have shredded documents because the Lender would have a copy anyway. What about have historical information on your clients which is gold.
  • Tom | 28 Sep 2012, 05:25 PM Agree 0
    Who is the "independent finance brokers association" let alone Officer Stephen Dinte? LOL
  • ozboy | 01 Oct 2012, 08:35 AM Agree 0
    Nothing to hide then nothing to shred!
  • Wilko | 02 Oct 2012, 09:59 AM Agree 0
    If Stephen Dinte is correct then every broker in the industry should be audited to ensure compliance. However I suspect that if Aussie still have the client files and not the applications then there is no issue and that is the way it was.

    Let me take a stab at the results if everyone was audited.... Massive industry fail.

    Hopefully the MFAA tells the independant finance brokers forum "Who?" where to go.

    BTW... Not an Aussie broker. Just a concerned one.
  • Stephen Dinte | 02 Oct 2012, 10:16 AM Agree 0
    The Independent Finance Brokers Forum is a group of experienced brokers who hold monthly meetings in Sydney aimed to expand the knowledge of all brokers who attend. It is a not for profit organisation that commenced some years ago as a means for borkers to meet and exchange ideas/issues that they encountered. The aim of the group is to help all brokers become more profitable and compliant. One recent guest presenter was a senior analyst from ASIC. Our meetings have been granted CPD hours by both MFAA & FBAA, although this does not mean we are formally endorsed by either organisation. If you require more information about IFBF, then go to our new website -
  • John Whitten | 02 Oct 2012, 10:33 AM Agree 0
    I was advised by my aggregator pre NCCP that we were to keep all our documentation to do with any loan we have written , and I have. It may be interesting times ahead.
  • 1martym1 | 03 Oct 2012, 09:05 AM Agree 0
    We used to scan and destroy all files
  • MKY Broker | 03 Oct 2012, 03:19 PM Agree 0
    I have no problem with Aussie brokers shredding files. We have always done this once settlement is confirmed and will continue to do so. However, we have scanned copies, which include all applications, supporting documents, file notes, faxes, signed mortgage documents, all correspondence etc. We even have this for prospects that never proceeded. Even if not a legal requirement, this is simply good business practice.

    If Aussie are unable to supply copies of applications and supporting docs due to the instructions provided to brokers, then I think Aussie needs to explain to the MFAA and ASIC.
  • Kram | 05 Oct 2012, 11:38 AM Agree 0
    Last time I checked, a "loan application form" is not one of the "original" required documents in our industry (eg. O&A Property Purchase Contract, Consumer Mortgage doc, etc). As the majority of brokers wouldn't (shouldn't?) generally be in the possession of original documents, it shouldn't be a problem to have all docs scanned and destroyed (just check your backup and archive processes work!). I was under the belief that in our normal broking activities we needed to keep copies of our client files for "7 years after the discharge" of the mortgage.
  • ozboy | 05 Oct 2012, 02:21 PM Agree 0
    Any official word from MFAA, FBAA or ASIC in relation to the time frame we need to keep documents, if not perhaps this is something ABO would like to get a comment on.
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