Challenger has called on the federal government to ensure the National Consumer Credit Code legislation does not discriminate or disadvantage the third-party distribution channel.
Speaking to Mortgage Business, Challenger general manager of distribution, broker platforms and lending, Steve Weston, said the group would be making a submission to government to ensure the legislation did not result in a more complicated process for borrowers and brokers alike.
Mr Weston said he also hoped to hold talks with ASIC to find out exactly how the legislation will be implemented and enforced.
“If you want competition in the industry, and we do, then we cannot make it difficult for brokers to submit loans or acquire a license,” Mr Weston said.
Challenger is urging the government to ensure the proposed licensing system includes provisions for different classes of licenses to ensure they are accessible and affordable for smaller players.
“Brokers offer a range of products while a lender will only offer their own, so it is in the best interest of the consumers that the government does not impose legislation that is unnecessarily severe on brokers,” Mr Weston said.
Despite a few teething issues, Mr Weston said Challenger was generally satisfied with the legislation as it would serve to improve professionalism in the industry.
PLAN Australia CEO Ray Hair agreed that the legislation was a step in the right direction.
“The Code will encourage a level playing field between non-bank and bank lenders if done correctly, however, if the legislation is too onerous then that is something we would take seriously and raise our concerns over,” he told Mortgage Business.
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