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'Disgraceful' ACCC decision derided

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Australian Broker | 14 May 2012, 06:00 AM Agree 0
An industry stakeholder has blasted the "disgraceful" ACCC decision allowing mandatory MFAA membership for some brokers, but claimed the broader market will not be affected
  • sidbroker | 14 May 2012, 10:46 AM Agree 0
    ACCC needs to be disbanded. Hopefully a new Federal Govt. will see that and act. ACCC only gets heavily involved with small business and allows the Big Business to do what they like.
  • Wilko | 14 May 2012, 10:46 AM Agree 0
    Obviously the FBAA is irrelevant from an ACCC perspective. For your members sake Mr White read the ACCC determination.. They rated the MFAA standards higher than ASIC's and beneficial for the consumer!

    Way to go Peter. Bag them instead of understanding the ramifications for us members.

    Tired of this rubbish....
  • Ripped off broker | 14 May 2012, 10:49 AM Agree 0
    you have got to love a country where you have freedom of choice. You can have black or you can have black.
  • Graham Reibelt | 14 May 2012, 10:49 AM Agree 0
    This decision is a bad one. Membership of any industry body should not be compulsory when you have ASIC licensing.

    The continuation of compulsory membership is the only way either can realistically survive as neither association offer a strong value proposition for brokers. Both need to substantially lift their game.
  • Dissatisfied - | 14 May 2012, 10:51 AM Agree 0
    As a broker - we are engaged by our client to act for them in negotiations with lenders - thus we too are the consumers. A total contradiction in investigation by ACCC.
    What is the point of holding a licence under NCCP - if random requirements and inconsistancy exists in the industry?
    How is the consumers interest upheld here?
    Brokers are again persecuted as consumers for making the wrong choice of service providers in selecting an aggregators that does not represent them - nor support their interest!
  • BJ | 14 May 2012, 11:14 AM Agree 0
    Brokers need to quantify what is relevant and what is not. Lambasting the ACCC achieves naught. Yes, the MFAA is largely an irrelevant body and many industry associations not dissimilar, but they are the INDUSTRY ASSOCIATION!!!It is noteworthy that less than 35%, from all accounts of MFAA members voted to empower DUD aggregator and BIG bank representation. So stop with the blame game and if you want an association truly representative of the broker, than take a stand, vote, amend the MFAA constitution and remove these DUD so called industry representatives. In other words Put Up or Shut up!
  • Sally | 14 May 2012, 11:14 AM Agree 0
    Membership to MFAA is compulsory to Aussie and Mortgage Choice only. This is a franchise condition. Obviously these two groups feel their members can't make a decision for themselves and therefore it is made for them. Just be careful what group you go with and make sure you can run your business the way you want and not the way the group wants. There must be something in it for them to insist on this membership. Instead of writing here, you should have written to ACCC.
  • Broker | 14 May 2012, 11:33 AM Agree 0
    What a “directionless mess” this industry is in, what and who will it take to sort it out once and for all. Not ASIC, not ACCC, not MFAA, not FBAA and not our Aggregators either.

    All that seems to have been achieved thus far is fleecing Brokers for more annual fees and bombarding our clients with compliance crap, which they don’t even want to read.

    And the winner here is who?. what a joke.

  • Glen | 14 May 2012, 12:56 PM Agree 0
    MFAA pointless, NCCP a farce, the profession really evolving????
  • Peter | 14 May 2012, 01:02 PM Agree 0
    So in conclusion we brokers need to vote with our feet and make sure of the following:-

    1. Do not join Aussie Home Loans
    2. Do not join Mortgage Choice
    3. Do not join MFAA
    4. Join FBAA.
  • BJ | 14 May 2012, 01:43 PM Agree 0
    A serious amount of rhetoric and venting taking place on this post and subject.
    What is abundantly clear is that brokers in particular have limited confidence in the MFAA, I guess this stems from the absolute incompetence of the executive and the frustration that these appointed representatives simply rode the wave (as most did) off the back of the property boom. Let us call it as it is! But times are a change’n, so smell the roses.
    It is a poor debate criticising Aussie and Mortgage Choice brokers. For my part I rate these groups highly from a bonding, control and marketing perspective. Sure their business model seeks Mr and Mrs Joe Average broker and brokerage structures they employ ensure the house always wins. These franchise models do not want super performing brokers otherwise the house will lose. If you question the validity of that statement, consider that a MC broker needs to settle in excess of $5M pm to attract maximum brokerage and maximum trail. For these brokers, it is easier to stay than to go. Don’t criticise the broker! Many brokers, if not all the current, may not recall a successful sales group called MI Group. Same model different day and product.
    Until brokers actually understand their collective power and can unite in a coherent fashion, nothing will be achieved. Yes and this is part of the MFAA creed. The MFAA is but an arm of the aggregators and banks. Hello it is about control!
    Here is some food for thought and if the penny never dropped than your business in finance is ready for a shock.
    These are as follows and far from exhaustive:
    1. Lenders want only brokers who provide quality, consistent deals;
    2. Pressure will continue on brokerage;
    3. Broker numbers will decline;
    4. Broker businesses will devalue;
    5. Regulation and compliance will increase;
    6. Financial Planners will become a force in the market for finance.
    Happy to continue to add my 50 cents! Does a solution exist and is there a perihelion, you now the proverbial bright spot? Of course, we just need to open our collective eyes!!
  • Steve McClure | 14 May 2012, 02:21 PM Agree 0
    In March 2011 I made a submission to the ACCC re the detrimental broker and competition implications. Their reply was;
    "It should first be noted that, broadly speaking, companies are free to set the terms and conditions of their contracts as long as they do not engage in misleading or deceptive conduct or misrepresent their service."

    We have to concede that the ACCC will not outlaw something that may have a wider public interest. Therefore, it's up to alternative associations to gain wider appeal.
  • Mark Moenting | 14 May 2012, 05:28 PM Agree 0
    With this guaranteed membership revenue windfall the MFAA can provide a subsidy to the voluntary new/existing members??? What do you think?
  • Tom | 14 May 2012, 05:32 PM Agree 0
    Mortgage Choice and Aussie clearly run the two best retail businesses in our industry with more brokers from these companies in this magazines top 100 than any other. It speaks volumes about the quality of the FBAA if they both do not wish to deal with this industry association. The MFAA ain't great however as a former FBAA member, they are useless.
  • BJ | 15 May 2012, 05:25 PM Agree 0
    Tom your point is misleading. If Mortgage Choice and Aussie did not have the numbers in the top 100, one would be very surprised. The maths work i.e. numbers on the ground.
    However Tom, to suggest that “it speaks volumes” is a stretch at best. Mortgage Choice and Aussie brokers do not have choice. MFAA membership is “mandatory” now that speaks volumes!
    The fact that this debate continues is a clear reflection that brokers are utterly frustrated with the MFAA and that also speaks volumes about the relevance and credibility the MFAA carries.
    No one would disagree with you that Mortgage Choice and Aussie are superb retail businesses and their business franchise model works.
    The issue of the debate is the MFAA, relevance and the ACCC position to uphold mandatory membership for some brokers.
  • Liz | 16 May 2012, 10:33 AM Agree 0
    Recently I received an email from MFAA advising my title has now changed to MFAA Credit Adviser(it was Accredited Mortgage Consultant before). Also, they ask me to consider to becoming an MFAA Certified Credit Adviser. So MFAA is creating more title to confuse us. Do you think ?
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