MFAA applauds strict broker discipline

The MFAA says it agrees with ASIC - stricter regulatory controls must be put in place to protect consumers from rogue brokers



The MFAA has welcomed ASIC’s banning of another financial executive (Harold Bundy of Ezymanagement) in Sydney last week, along with other industry safeguards, as it symbolises a stronger regulatory regime on the sector.

The banning of the executive, whom the MFAA stresses was not a member of the organisation, reinforces the association’s own moves to tighten the disciplinary controls placed on its members.

In light of an Australian Broker article published yesterday, in which ASIC spokesperson, Daniel Wright, said the organisation is witnessing a ‘continuing’ trend of fraud within the mortgage broking industry, MFAA CEO Phil Naylor says his organisation has expelled 31 members over the last eight years, with the ‘majority’ of those members found by the MFAA’s Disciplinary Tribunal to have engaged in ‘serious misconduct’ through submitting fraudulent loan applications to lenders.

#pb# Naylor says the organisation welcomes ASIC’s ‘strong involvement’ in the regulation of the finance industry, as well as its focus on the provision of three key areas this year, which he describes as: fraudulent documentation, misleading advertising and inadequate disclosure.

“The MFAA backs up ASIC’s moves in this area, as we are determined to ensure the highest professional standards from our members, as well as enforcing our strict and independent disciplinary procedures, backed up by high education standards.”

He says ASIC and the MFAA have also come to an agreement regarding the usage of the term ‘independent’ in broker business names.

“They’ve agreed to discuss with any broker who feels inconvenienced and anyone who comes to us, we just pass on to ASIC. However, there have only been a handful – we’ve only identified four or five individuals.”

Naylor says the National Consumer Credit Protection Act (NCCP), enforced by ASIC, has gone a long way in tightening up the mortgage and finance industry’s standards.

“That is why, as an industry body, we enforce strict rules on our members to ensure they deliver the best possible service and customer protection.”

Keep up with the latest news and events

Join our mailing list, it’s free!