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Draft bill: All brokers to be licensed by mid-2010

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Australian Broker | 27 Apr 2009, 03:00 PM Agree 0
As part of the proposed new National Consumer Credit Protection Bill released today, brokers will have to register with ASIC before the end of the year and all will need to be licensed by 30 June next year.
  • Phil | 27 Apr 2009, 05:09 PM Agree 0
    The end of the lo-doc loan.
  • KeyChange | 27 Apr 2009, 05:45 PM Agree 0
    Sorry Nick but there is no amount of certification and hoop jumping that will change an unscrupulous operator into a scrupulous operator. Therefore licensing will provide the unscrupulous with a veil behind which they can unscrupple away at will. Looks like the MFAA becoming more powerful, more fees and more expensive training and playing more into the lender's hands than ever. Frankly I am thinking of doing a skid steer certificate - I prefer the thought of shovelling mud to shovelling BS.
  • PeterT | 27 Apr 2009, 06:07 PM Agree 0
    Anyone who "Suggests" a loan - does this include the financial planners and accountants who refer directly to banks? Lenders often pay a commission on these arrangements, will this need to be part of a full disclosure document.
  • LYNNE COX | 27 Apr 2009, 06:32 PM Agree 0
    I would like to know what of Licensed Finance Brokers in Western Australia who may have recently paid $2000 for a personal licence and a Company licence?
    Licences are generally good for 3 years.
    Are you saying that we will just have to wear that cost andpay again for the new licensing?

  • Graham Gold Coast | 27 Apr 2009, 06:43 PM Agree 0
    I am from the Government and here to help. All you need is the annual cost of PI, MFAA, COSL get your Cert VI and now A Credit License.
    And has the system improved...............hardly.
  • positive broker | 27 Apr 2009, 07:58 PM Agree 0
    mmmm. anything that makes it harder for incompetent brokers giving the rest of us a bad name would be good right! As long as it doesn't cost a fortune I can't say I'm scared of licencing & registration.
  • Michael - Adelaide | 27 Apr 2009, 09:54 PM Agree 0
    Now that the minister of regulation want so to bring in the Credit License, surely there is no benefit to being a member of MFAA? For that matter, if we have to pay money for a license, surely they can provide an external resolution service too?

    What will the requirements for a credit license be that Cert IV, MFAA & COSL membership do not alreay demand?

    The unscrupulous opperators that exist currently, please profile some real examples. If none of them are members of MFAA & COSL & have Cert IV or similar trainig ans experience, then either a license or all the other requirements should limit them somehow. But do not all Financial Intermediaries demand some/all of these other requriements? If not, why not hit them harder of allowing unscrupulous operators to operate. By doing this, Fin Intermediaries will demand higher standards of brokers, and weed out the unscrupulous rather than heavy handed regulation.
  • Thomas | 27 Apr 2009, 10:48 PM Agree 0
    MFAA is death, if not we should all kill it. Unless they spend some of our money for advertising, I cannot see the reason for their existance. Let's kill it.
  • Thomas | 27 Apr 2009, 10:48 PM Agree 0
    MFAA is death, if not we should all kill it. Unless they spend some of our money for advertising, I cannot see the reason for their existence. Let's kill it.
  • Pete | 27 Apr 2009, 11:07 PM Agree 0
    Bugger, now I have to go and buy another frame to put it in and drill another hole in the wall to hang it on, my wall's going to look like it's been shot at by a machine gun....
  • Maria Rigoni | 27 Apr 2009, 11:27 PM Agree 0
    hello contact me at

    I am interested in creating a real finance broking profession (new legislation from first glance calls it credit service provider)

    who else is interested? Up to us not them!
  • Mike | 28 Apr 2009, 08:38 AM Agree 0
    I have always wanted to see something done by the government to clean out the huge number of part time brokers in our industry. They let the full time professionals down by delivering a poor customer experience. I am tired of hearing people say "I will never use a broker again".

    Now that the legislation has arrived, I am fairly sure it will do what I wanted. The compliance cost will be high and aggregators will be forced to remove unproductive brokers. The part time broker will hopefully pull up stumps and stop clogging up our lenders with rubbish deals.
  • Never Fear | 28 Apr 2009, 09:24 AM Agree 0
    If you're doing the right thing and not being dodgy, you've got nothing to worry about. If licencing helps flush the cowboys out of the industry, bring it on.

    One must wonder if those screaming loudest about this have the most to lose under the new structure ...
  • Goodo | 28 Apr 2009, 10:10 AM Agree 0
    Is this the death of the Lo Doc Loan as lenders will need to determine the capacity of the person to repay?

    The Lo Doc loan has a rightful place with the smaller self employed applicants, however, with this new requirement will it be the death of this section of lending due to fear of the US sub prime mess?

    Also it appears that the onus is on a broker to:
    1. Declare his income / commission
    2. Determine the capacity

    Have no problem with this as long as it extends to all including bank staff & their direct introducers (accountants/ Real Estate agents etc)
  • Allan | 28 Apr 2009, 10:42 AM Agree 0
    We can only hope that the licensing, which is trying to kill brokers, will apply to accountants, and other agents who refer to banks. MFAA should be killed as it is only a front for the banks who sponsor it. Goodbye real life. If licensing is so important - why charge for it? Where is the fair go for all?
  • Phil | 28 Apr 2009, 12:34 PM Agree 0
    "Under the proposal, to qualify for an Australian Credit Licence, brokers will have to meet minimum training requirements and having adequate financial and human resources to meet their obligations."
  • Phil | 28 Apr 2009, 12:36 PM Agree 0
    "Under the proposal, to qualify for an Australian Credit Licence, brokers will have to meet minimum training requirements and having adequate financial and human resources to meet their obligations." Adequate Financial Resources - WHAT DOES THIS MEAN EXACTLY?? And what we all have to have a P.A to protect the consumer??
  • Patrick | 28 Apr 2009, 12:46 PM Agree 0
    Can someone tell me just how the Financial Services Reform Act & ASIC protected the victims of say Westpoint or Storm Financial? I have lodged complaints with ASIC (and ACCC) in the past and have only received a polite letter stating that they lack the resources to investigate all matters. All we will get is more paperwork and costs for the "good guys" while the "crooks" will continue to pillage with impunity.
  • Glen Miller | 28 Apr 2009, 01:46 PM Agree 0
    Why when a broker is not the party that approves, signes off a loan or generates there own servicability calculators or critera do we need regulation greater than we allready have Cosl, PI cover FBAA etc. As the market is controlled by US mortgage insurers (hell bent on mitigating US losses in AUS and screwing with our industry) further they are the instutions dictating loan acceptance not the Broker or Funder. This is just another waste of everyones money for buracrats to bullshit the public and acheive less than nothing. It will not stop any dishonest parties.
  • Andrew | 28 Apr 2009, 01:54 PM Agree 0
    "All holders of an ACL will be required to meet new obligations immediately on becoming licensed. For example, they will be required to be properly trained and ensure representatives are adequately supervised"
    The Banks need a licence but their branch lenders don't as long as they are properly supervised?
  • BBB | 28 Apr 2009, 02:42 PM Agree 0
    The Brokers need a licence , credit providers need a licance,all good lets get rid of the part timers , and for that matter the MFAA no arguments there ,

    BUT what about the mobile lenders on a commission from the bankers who "employ" them , will they have to have certificate IV , membership of a dispute resolution body, if ASIC apply these rules the same way as they applied the financial adviser ruke the answer is NO , Come on Minister get your head out the clouds these operators are worse than brokers as they only sell one product
  • Mic | 28 Apr 2009, 06:52 PM Agree 0
    In the UK when the FSA (ASIC equivalent) took over from the self regulatory body a broker had to have 5,000 pounds (about $10,500) or 5% of turnover in financial resources whichever was greater sitting in a bank account. Is that what ASIC is talking about?
  • Stephen Dinte | 29 Apr 2009, 11:42 AM Agree 0
    When I first commenced broking in 1995, I had to have a licence issued by the Dept of Fair Trading in NSW. To qualify, you had to prove you had experience in finance, i.e. 25 years in Banking, you had to supply references to attest to your good character and you had to supply a personal A & L statement to prove you had a reasonable financial standing. This was all later trashed as it was deemed a "barrier to entry". This let all and sundry into the industry, which is why we now have to go back to licencing.
    Been there, done that!
  • JCB, SA | 29 Apr 2009, 11:50 AM Agree 0
    110% agree. We don't make the lending policies, we did not invent Low Docs; we don't approve the loans; we don't "invest" our clients money for them. The banks' GREED for market share/profits/bonuses incented them to be innovative. From day 1, Low Docs are open to abuse but the bank's risk management dept was steam-rolled and over-ridden by the bonus and performance driven bank execs. We don't need to be licensed. The current rules & regulatns, accreditatn requirements etc. are sufficient. The do-gooders received inadequate advice. All they need to do is fix the "instruments/vehicles" which make it easier for perpetractors to commit crime.
    1.Bann "no proof of income required" type loans, 2.Stricter lending policies on lines of credit facilities would have saved more than a few Storm would-be investors
  • Graham | 01 May 2009, 08:36 AM Agree 0
    The real scam in lending has always been the the 'Fractional Reserver' system of banking. Lending non existent fiat money into existence. Creating money out of thin air and charging interest on it.

    Yes, money is brought into existence out of the debt (loan) created. Brokers are part of the system.

    Is this information part of Certificate IV? Does the public know they are charged interest on money which they themselves created via the the exclusive franchise which is the banking system? If they knew, they'd riot in the streets the very next day.

    Address the fractional reserve banking scam first before licensing brokers. Unless this is addressed scams in lending will never disappear.
  • Martin Houlihan | 15 May 2009, 03:01 PM Agree 0
    What a Joke, the world economies crashing, What’s new !!! any who is as old as me, new it was coming, long ago, 1st world countries were living on a credit card funded life style not just in the USA but around the world. How can world economies, run forever with property prices escalating, far above wages, allowing home owners to go out and borrow an extra $ 100,000 of Virtual money to spend on imported goods made from cheap labour countries, While the 1st world business were crashing. The Governments & big business of the world were happy, more money for them in land sales, stamp duty rates, shops were booming selling over seas goods, , what was manufactured locally NOTHING , it's all bullshit if it was only me who new it couldn't last. What good are low interest rates when you loose your job. Which is about to happen in a big way, What about the recovery they talk about, another crock of !!!!!!! The 3rd world countries are buying up all the plant and equipment from the 1st world countries and shipping it back. home, They will be the first to recovery, first.
    What about all those investors encouraged to buy investment properties for their retirement using their home equity, As things get worse no more holiday makers, no rental return, where is the money going to come from to service the loan & body corporate fees. More repossessions, things are going to get a lot worse.. All these new regulations talking in parliament it’s just another cover up to making it look like it’s the brokers of the world that caused all these problems, what a joke. It’s the powerful, the rich, big business, and governments (Massive Stamp Duties) ( Increase Rates ) are to blame, it’s THEIR GREED.that was the cause. There are enough regulations now, but you will never stop the crooks, they always find away, while the rest of us have to suffer. Will governments refund some of the stamp duty they reaped during the good times now that property prices are falling? ( I don’t think so ) The poor people of this world are so happy to own their own home they would starve, rather than lose it.
    All brokers do is perform a service, There are always solicitors involved in every transaction, who is looking at them. That’s my winge for today, hope you enjoy
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