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By: Jessica Darnbrough
Fears that industry body membership numbers will fall after licensing have been dismissed by FBAA president Peter White.
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At present, brokers must be accredited with either the MFAA or the FBAA in order to deal directly with the banks.
However, there is concern that when regulation comes into effect later in the year, having accreditation with an industry body will no longer be a prerequisite.
Mr White has dismissed the concerns, and said industry bodies such as the FBAA will remain as relevant as ever.
“ASIC will perceive industry bodies to be a critical link in the chain,” Mr White told The Adviser.
“The industry bodies will need to make sure that all brokers comply with the licensing regulations. Even though, under the NCCP, there are no requirements for brokers to be a member of an industry body, there is a practicality of what needs to be done – which makes it relevant to the impact of the legislation.”
Mr White said he had been in conversation with the various lenders and, at this stage, no lenders were considering removing the requirement that brokers must be part of an industry body.
“Brokers will still need to be a member of an industry body in order to be accredited with any of the major lenders,” Mr White said.
