Industry heads to front questions over cancelled accreditation

by Calida Smylie21 May 2014
Australian Broker’s coverage of a broker who had his accreditation cancelled without a reason has inspired a meeting between brokers, the heads of industry associations, and senior aggregator staff.

Members of the Independent Finance Brokers Forum (IFBF) have called the meeting on 30 May to let brokers put questions about the contentious issue to MFAA chief executive Phil Naylor, FBAA chief executive Peter White, Connective principle Mark Haron, Choice regional manager Jeanette Rowland and Outsource Financial chief executive Tanya Sale.

IFBF member Peter Blain, who is co-ordinating the meet, said it was inspired after members read Australian Broker coverage on the plight of a Melbourne broker who had his accreditation cancelled by NAB, which refused to give a reason.

When the broker contacted his aggregator, they also gave no reason for the cancellation, only indicating it was due to his association with someone else.

The broker is now trying to get his affairs in order – having to deal with lost trail, refinancing current clients, and finding other lenders to take him on while this is hanging over him.

Blain said IFBF members are very concerned that lenders can come along “out of the blue” and for no reason take away a broker’s accreditation.

“We don’t mind if accreditation is cancelled if there is a good reason for it but not to give a reason is not just.

Blain likens the situation to being terminated at work without being given a reason, and when you ask for the reason your request is refused. “This just wouldn’t happen.”

As well as senior aggregators and industry association heads, there will be a PI insurer there to talk about the ramifications that cancelled accreditation with no reason can have to PI insurance.

The meeting’s organisers hope those at the top will listen to brokers concerns and do something about it.

“We want industry leaders to take up our case and champion our cause to lenders,” Blain said.

“We want them to take on board what we are saying – for heaven’s sake that’s what we pay them for.”

Invitations have been sent out to around 130 IFBF members, but the invitation has also been extended to all brokers who are interested in the topic and want their questions answered.

The meeting will be at the Rosehill Bowling Club, Sydney, on 30 May.

Read topic coverage:

Lenders speak up on broker's cancelled accreditation

'Aggregation lost its way', says association head

'Dangerous situation' for broker who lost accreditation, says aggregator

Lenders 'acting as God' but nothing can be done, warns broker