ASIC must give banks the same scrutiny as brokers: FBAA

“There needs to be a level playing field because at this stage it seems like only brokers are being targeted by ASIC,” he said.

Mr White said many FBAA members have expressed concerns about the tactics used by branch managers at banks.

“It makes sense that if the regulator is already looking at the operations of branch managers in terms of financial planning activities, this should be extended to include credit and lending activities,” he said.

Mr White’s comments came in response to a Fairfax Media article, which said ASIC wanted tougher powers so it could “target bank staff to change cultures to better protect customers”.

A poll conducted earlier this year by The Adviser found that 74 per cent of respondents thought ASIC was prejudiced against the third-party channel.

Oxygen Home Loans general manager Alan Hemmings said it is easier for ASIC to forensically investigate brokers than banks because of the smaller number of loans involved.

Mr Hemmings also told The Adviser that it is difficult to accurately assess how ASIC regulates brokers without knowing how many brokers pass its audits.

“If ASIC were to come out and say, ‘We audited 1,000 brokers this year and only caught three who were doing something illegal’, it’s a good news story. But because they just come out and say, ‘We caught three’, it’s a bad news story,” he said.

Nexus Partners managing director Chris Campbell said he assumed that ASIC focused equal attention on brokers and bankers.

He told The Adviser it would be wrong to suggest that banks didn’t have strong internal procedures.

“Banks also have very strict internal policies and procedures that make sure their people are operating within the legislative framework,” he said.

[Related: ASIC told to back off]