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At the beginning of the year, the broking industry passed a milestone in its development, with the creation of a licensed professional environment. This month, we ask...Are the new NCCP requirements for the broking industry too onerous?
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PETER WHITE, FBAA president
I don’t believe the requirements are too onerous. The industry is undeniably better off with the introduction of licensing. Industry standards and professionalism have been raised. ASIC paper work has been scaled and adjusted to suit the needs and restrictions of the various business sizes. I believe brokerages with 5 to 10 brokers face the biggest challenge as they are in the middle ground – some changes may be necessary for them, while brokerages with 15 to 20 brokers face a simple transition.
JEREMY FISHER, 1st Street
I am personally seeing that there is a fair amount of “doubled up” paperwork under the new legislation. Therefore, efficiency is being affected as we have to do more work on every submission. I agree with the need for the new licensing but I feel it hasn’t been thought through in the practical sense. There is certainly going to be an adjustment period needed to adapt to the new requirements. That said, I believe the move to licensing is a sound move for the industry.
ELLE MCKENZIE, Crawford Mortgage Services
While the majority of the industry already conducted itself professionally and competently pre-NCCP, I think it is better off ‘in principle’. I feel the NCCP requirements are far too onerous in terms of the duplication in paper work. More consultation with brokers could have resulted in more efficient ways of administering the requirements and a far more efficient process. The transition was well supported; however, as with any new legislation there are still areas which are open to interpretation.
MARK O’REILLY, Choice Home Loans
I believe there has always been a need for licensing and regulation, however, the current system is definitely causing high levels of stress for both brokers and consumers. Processing a loan or mortgage now requires additional work and consumers are growing frustrated at the extra time it takes to process a loan and the repetition of questions. I think the industry would have benefited from greater broker consultation. In addition, I think we would have been better off with one universal document.
PHIL NAYLOR, MFAA chief executive officer
The benefits of licensing are indisputable. The industry has been pursuing licensing requirements for many years and this is a great accomplishment, not just for the banking and finance industry but for consumers as well. There will be an adjustment period, but overall, I expect it to be a simple transition for prior MFAA members, as NCCP standards and requirements are similar to those we have enforced for years. In the future, I do not anticipate a strong need for legislation adjustments.
