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The major brokerage has expanded on its BID preparations by launching a new Code of Ethics for brokers and its staff.
Loan Market has developed a Code of Ethics as part of its work to deliver the incoming best interests duty, set to come into force later this week.
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While the brokerage has been rolling out compliance tools through its digital process The Loan Market Way, the brokerage and aggregation group said that while this supports brokers in how they must act, the code outlines “how they choose to act”.
“Loan Market brokers and their teams are serious about the commitment they make to their customers,” the Code of Ethics reads.
It outlines six areas that Loan Market brokers and staff will work towards:
- Work in the customer’s best interest - “We are committed to a culture of acting in the customer’s best interest, every time. We ask questions and listen intently, so we fully understand our customer’s needs and objectives,” it says;
- Transparency - “We do all that is possible to ensure our customers are fully informed about why we make the loan recommendations we do, and how we get paid,” it reads;
- Governance and culture - “We will always act in accordance with applicable laws and cooperate with any regulatory bodies. We see our role as constantly adapting, leading and shaping best practice in the industry,” it says;
- Manage conflicts of interest - “Conflicts can happen from time to time. When any conflict of interest exists, we will disclose them to our customer and always give priority to their needs,” it says;
- Committed professionals - “To deliver outstanding results for our clients, we invest in ourselves and our business. You can have confidence we maintain, develop and apply a high level of knowledge and skills to meet all required industry standards and qualifications,” the Code of Ethics outlines; and
- Quality - “We will do everything possible to ensure records of clients are retained, maintained and kept in a form that is complete, accurate and safe,” the code concludes.
David McQueen, Loan Market’s chief compliance officer, said the code would ensure customers knew why brokers made certain recommendations, as well as how they got paid, trying to offer peace of mind off the back of a year which saw consumer confidence reach all-time lows.
“BID outlines how we must act, but our Code of Ethics adds to this by outlining how we – as brokers and corporate staff – choose to act, beyond BID’s mandate,” he said.
“The Loan Market Way keeps brokers safe in the new era of regulation with a strong emphasis on compliance-focused tech. But the tech supports the human touch in the broker-customer engagement – it doesn’t replace it.
“So, away from the machine-learning, AI, automation and other digital tools that keep our brokers safe, the code sets out how brokers honour the faith their customers place in them.”
[Related: BID changes could see brokers earning nothing on some loans]
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