The MFAA has called on the government to keep the proposed licensing procedures for brokers simple and easy to avoid driving smaller operators out of the market.
The calls are part of a submission put forward by the MFAA in response to the draft National Consumer Credit Protection Bill.
Phil Naylor, CEO of the MFAA, said today that overall, the draft legislation was sound but called on the government to ensure licensing procedures were not over-complicated.
“...the vast majority of the mortgage brokers practicing today [are] small operators and we need the government to ensure that the licensing requirements are not cumbersome or onerous and do not prevent these small operators from staying in business.”
Mr Naylor said it was important new consumer credit laws did not become as complex as the existing AFSL regime.
“The complexity of the AFSL process militates against the licensing of small operators, a situation we need to avoid in order to promote competition and consumer choice.
“The vast majority of brokers are small (mainly one person) businesses, so the licensing process must reflect this and be simple to comply with, and must not include artificial hurdles which do nothing to protect consumers,” said Mr Naylor.
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