The MFAA today terminated the membership of 1,100 broker members who have failed to meet the educational standard necessary to become MFAA credit advisers.
In 2009, the MFAA board decided that by January 31, 2013 all loan writing members must have successfully completed the Diploma in Financial Services (Finance/Mortgage Broking Management) or equivalent to continue membership with MFAA.
The MFAA says all members have been reminded of the requirements ‘many times’ over the last 12 months, following the national board’s decision to actively demonstrate that members have high standards of professionalism and qualifications with consumers and regulators.
MFAA CEO, Phil Naylor, tells Australian Broker the organisation is both pleased and ‘not surprised’ that more than 88% of its members are now qualified, with expectations that many of those whose membership has been terminated will seek to have it reinstated within the next two months by providing evidence of the required education qualifications.
“It’s about what we were expecting. We always thought most members are well and truly behind us and we thought about 90% of members would meet requirements. A lot of those who didn’t meet the deadline will come back.”
Naylor says it’s ‘hard to know’ why the other 12% failed to meet the requirements, but says they possibly don’t share the view of the ‘vast majority’.
“They don’t want to see the MFAA as an organisation with high standards, but we really have to run with the vast majority who want to see their organisation promoting high standards. Members can still be reinstated within the next two months; after that they have to go through the normal rigorous membership application process.”
Naylor says it’s important that the sector, which now delivers more than 40% of mortgages in Australia, continues to show leadership in professional education, standards and compliance, negating the need for any further government intervention and regulation.
“With this sector providing home loans worth more than $100 billion this year, MFAA credit advisers are now a very important part of the financial services sector and MFAA members can now confidently display and promote their qualifications to their clients. I thank all of our members who have attained the new standard and accreditation and urge those who have been slow off the mark to get their diplomas as soon as possible to regain their membership status.”