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MFAA Prosper : Mortgage and Finance Brief 11
12 | Mor tgage & Finance brief The recent announcements from ASIC send a clear message – and warning – to brokers that the regulatory body will be taking on a much more active enforcement role, MFAA CEO Phil Naylor says. In recent weeks, ASIC has announced crackdowns on false credit licensing, legacy exit fees and misleading financial advertising. Naylor says this is an unequivocal signal to brokers that the body will do the same with the NCCP regulations. “ Brokers must be certain they are following the letter of the law, because ASIC is going to become more aggressive once the initial acclimatisation and transition period for NCCP comes to an end,” Naylor says. There has been a mixed reaction from mortgage brokers to the ASIC crackdown, with some brokers feeling the tightening of regulations can only benefit the industry, while others are of the opinion the ASIC could be focusing on more pressing matters such as the stagnation of the property market. “ I guess this crackdown looks good politically, but there is always a cost to doing business and the ban on exit fees will be passed on to customers in some other way,” says Matthew Owen of National Finance Club. “ There will be teething problems in relation to false credit licensing until the industry gets their head around it – it might have an adverse effect for some, but if they can make it work it’s a good thing for everyone.” Paul Tame from Commercial Finance & Investment feels the ASIC should be more focused on reviving the flagging property market. “ The crackdown has not bothered me too much yet, I guess it’s a wait-and-see thing,” he says. “ In saying that, if you brought all the mortgage brokers in Australia together to discuss the industry, I don’t think these changes would be high on the agenda. “ We are more concerned about attaining more business. There’s a time and place for caution and being ultra- conservative, but given that the market is flat right now, I think the ASIC has more pressing matters to deal with.” Despite some having reservations about the ASIC clampdown, William Chen of Pacific Mortgage Centre welcomes it. “ Transparency is vital to our industry,” he says. “ The amount of brokers without the right qualifications is too high, which increases the risk of customers being misinformed. The education bar in relation to regulations must be raised; it will make the industry more competitive.” Brokers must be mindful of ASIC crackdowns: Naylor “ASIC is going to become more aggressive once the initial acclimatisation and transition period for NCCP comes to an end.” MFAA News Become an MFAA Certified MentorTM A mentor is one of the most valuable things a new entrant to the industry can have. The MFAA has formed a strategic alliance with Alpha Broking and Simply Mentoring in offering a ‘train- the-mentor’ program to MFAA members, creating a minimum standard for mentoring new entrants. The ‘train-the-mentor’ program is an intensive development process for members wanting to become an MFA A Certified MentorTM . Successful completion of this program will provide members access to a complete two year structured mentor program; materials, training plans, assessment tools, and ongoing support. Turn to page 20, where we speak to three brokers who’ve benefited from this mentoring program. MFAA CEO Phil Naylor has urged members to ensure that they complete their diploma on time to satisfy membership requirements. Members holding MFAA AMC, AFC or CMC status must provide evidence they have completed a ‘diploma meeting MFAA criteria’ by 30 June 2012. ”Members must take all the necessary steps to ensure that they don’t miss out next year,” Naylor says. Diploma reminder
Mortgage and Finance Brief 10
Mortgage and Finance Brief 12