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The Finance Brokers Association of Australia has welcomed the news that ASIC has reduced the cost of acting as a credit representative by 85 per cent due to a decreased cost of enforcement.
According to the FBAA, the Australian Securities and Investments Commission (ASIC) has confirmed to the body that broker credit representative licence fees have been reduced as a reward for the sector’s professionalism.
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The cost to act as a credit representative for brokers has dropped by nearly 85 per cent, from $104 to just $16.48 annually.
FBAA managing director Peter White said the confirmation of reduced fees means brokers are being rewarded for doing the right thing by their clients.
“ASIC operates on a cost recovery method, which means they only charge fees that cover the costs of enforcing to the industry,” he said.
The FBAA noted that the total cost of legal enforcements against mortgage brokers started at $15.6 million, dropping to under $9.1 million mid-year before being revised this month to $5.74 million, nearly a third of the original cost.
Mr White commented: “While banks have been exposed for their poor practices, brokers are being recognised for being best of breed.
“The professionalism of the industry and the ability of brokers to deal with any poor behaviour swiftly is paying dividends.
“The standard of our brokers and our own monitoring practices have improved markedly and that is why ASIC has revised its fee schedule.”
Mr White concluded: “We hope they will continue to be able to reduce the fees as we improve what we do and demand the high standards that borrowers expect and deserve.”
[Related: Productivity commissioner becomes new ASIC deputy chair]
