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Large numbers of brokers are convinced that ASIC holds brokers to higher standards than lenders.
A recent poll conducted oline by The Adviser found that 74 per cent of respondents thought ASIC was "prejudiced against the third-party channel".
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Another 2 per cent disagreed, while 24 cent said ASIC had no impact on their business.
Freedom Home Loans owner Troy McErvale said the anecdotal evidence suggested ASIC did target brokers more than their counterparts at the banks.
“I would allege that the smaller broker is an easier target. They’re not going to be met with resistance because ASIC have the resources at their disposal,” he told The Adviser.
Mortgage Choice ACT franchisee Mark Reber also said ASIC seemed more likely to punish brokers than lenders.
“I think the standards are the same but they take action on brokers because they’re an easy target,” he said.
“It would be nice to see investigations into the lender side of things as well. There are enough poor practices going on behind the doors of the lenders as there are out here.”
Compass Financial Management’s lending manager, Michael Clarke, said the reason ASIC seemed harder on brokers was because banks often dismissed unethical staff before they came to the regulator’s attention.
“ASIC needs to obtain information directly from that first-party channel and needs to gain access to their internal auditing processes to be able to then report on the incidences of fraud,” he said.
Damien Natoli from eChoice said he was certain ASIC was disproportionately focused on brokers.
“They seem to be very big on picking on the little guy. They seem to be very afraid to take on larger organisations,” he said.
ASIC has consistently maintained that it takes action when it encounters misconduct, no matter who is at fault.
The Adviser also spoke to brokers who said ASIC was even-handed or had no impact on their business.
Go Private director Brian Taylor said brokers needed to stop complaining and get on with their jobs.
“If ASIC are investigating certain brokers and they are finding them guilty then this is good for our industry,” he said.
“Don't forget that rogue brokers are bringing our industry into disrepute. I am sure that ASIC treats both brokers and banks the same.”
