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ISCOVER
Jessica Darnbrough
While the industry has applauded ASIC’s hard line approach to one particular rogue broker, the watchdog has said its job is far from over.
Speaking to The Adviser, a spokesperson for ASIC said it has filed more than 120 credit matters for formal investigation since licensing came into play.
“ASIC will continue to concentrate on the mortgage broking industry and ensure that brokers are adhering to the new laws,” the spokesperson said.
“We stress that brokers must familiarise themselves with their obligations under the National Credit Act. They should know the law, read our guidance and seek additional/external advice if they feel they need it.”
Yesterday, ASIC announced it had brought 10 criminal charges against NSW-based broker Daniel Nguyen under the National Consumer Credit Protection Act – a move that was warmly welcomed by key industry stakeholders including MFAA chief executive Phil Naylor.
“We welcome the role ASIC plays in helping to keep this industry professional,” Mr Naylor said.
“I believe both ASIC and the MFAA play a key role in helping to keep this industry professional. While we welcome ASIC’s decision to charge Mr Nguyen under the NCCP, we also reserve the right to suspend or expel MFAA brokers at any time.
“Over the last 12 months we have expelled eight mortgage brokers. We have been very aggressive in ridding this industry of the rogue traders and I believe we have done a very good job.”
While Mr Naylor said when he first joined the industry there was constant talk of “rogue” or “cowboy” brokers, that talk has since subsided.
“We simply don’t hear about rogue brokers any more. The industry is more professional than ever, but there is still more to be done. The MFAA is committed to enhancing the broker proposition through greater education, new consumer advertising campaigns and appropriate legislation.”
FBAA national president Peter White told The Adviser that ASIC’s decision to bring criminal charges against the rogue broker sent a positive message to consumers.
“If the message is delivered the right way then it should be positive for consumers,” he said.
“It doesn't matter what industry it is, there are always some bad players that need belting so having a policeman (ASIC) on the job is a good thing and should show consumers that the vast majority of brokers (99.99 per cent) are professionals they want to deal with.”
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