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Many brokers pushed into ACLs: ALCo

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Australian Broker | 07 Apr 2011, 06:00 AM Agree 0
Many aggregators have pushed brokers to hold ACLs in order to minimise their liability, it has been claimed
  • Ozboy | 07 Apr 2011, 10:05 AM Agree 0
    MMMM wait til you want to move aggregators or take control of your business then the real cost of being a credit rep will show. Most aggregators offered an either or option so I am not sure where this is coming from or why it would end up here.
  • DavoNthSydney | 07 Apr 2011, 12:10 PM Agree 0
    What about the mortgage managers forced to get an ACL or lose their trail-books.
  • petert71 | 07 Apr 2011, 12:12 PM Agree 0
    My aggregator would love me to be an authorised rep. It would mean that effectively they can dictate how I run my business and give them the right to walk through my door at any time. Independance has a cost which I'm very willing to pay.
    I've yet to see what all the big deal about compliance really is. Brokers need to continue to put the customers first and have a little extra supporting documentation to demonstrate this. Review your procedures every 6 months to keep things up to date - that'll take about 15 minutes for most brokers. Compliance only gets hard if you don't have the right procedures up front or if you're not doing your best for your clients.
  • countrybroker | 07 Apr 2011, 01:00 PM Agree 0
    I cannot and do not get this comment, PLAN for example pushed the credit rep line and at a monthly cost of $139.00 per month plus COSL & P I Insurance -ouch!. They and AFG provided a real choice, that is the two largest aggregators in the country. I can understand a smaller aggregators wanting their brokers to be licenced. My company obtained a full licence without any fuss using the MFAA guides. It gives me independance and is cost effective for a 2 director operation. I have NO issues with comnpliance and complying. The MFAA have been really good with all the information supplied , and even today in their e newsletter it is providing more information.
    I for one am very happy to hold a full unrestricted licence and be a member of a very large aggregator, I EXPECT them to continue to fully support me, if they don,t I will look at leaving as I have independance.
  • Frank Paratore | 11 Apr 2011, 12:19 PM Agree 0
    Absolutely disagree - brokers need to look at what model is suitable for them not the aggregator , albeit ACL or Credit Rep ..... and then make a decision. If anything , brokers have been ' Pushed ' into becoming Credit Reps without adequate consideration of their business model !
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