Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Industry newcomers may be breaching NCCP

education  x education  x
Emma Ryan 4 minute read

Concerns of unqualified brokers entering the industry have been raised, following a dramatic rise in non-brokers obtaining Australian Credit Licences (ACLs).

In 2011 there were more than 20,000 ACLs and Australian credit representatives (ACRs) in the industry, with 92 per cent being accredited brokers, according to research by the FBAA.                     

Since then, the FBAA noted that combined ACL and ACR figures have increased to 39,000, with only 56 per cent of this figure “broker-trained”.

FBAA chief executive officer Peter White said he is concerned at the big increase in non-brokers holding this status.

Advertisement
Advertisement

“The total market of these credit licence and representative holders has climbed a staggering 88 per cent but the broker market has only risen 15 out of that 88 per cent,” he said.

“It’s a worry because these additional entrants in the consumer lending arena are not brokers per se and pose a concern as to conflicts of interest and possible poor advice.”

Mr White said many borrowers may succumb to a poor lending experience as a result of these people coming into the industry without the adequate amount of broker training.

“Who is really looking after their best practice interests and the regulatory issues that they need to deal with from a lending perspective?” he told The Adviser.

“Just because you may do a heap of hours of financial planning doesn’t equate and tick all the boxes for being a broker under the NCCP.

PROMOTED CONTENT


“If accountants, financial planners or anyone else in the industry want to act as brokers, you have to undergo specific and designated training to suit the needs of customers.”

Commenting on the FBAA’s claims, ASIC said all credit licensees have an obligation under the National Credit Act to maintain the competence to engage in credit activities authorised by their licence, and to ensure their representatives are adequately trained and competent to engage in credit activities authorised by the licence.

“Regulatory Guide 206 sets out ASIC’s expectations as to what is required of licensees to meet these obligations,” an ASIC spokesperson said.

ASIC’s rules state that credit representatives who provide mortgage broking services must have at least a Certificate IV in Financial Services and undertake not less than 20 hours of continuing professional development each year.

[Related: FBAA recruitment campaign attracts over 1,000 students]

Industry newcomers may be breaching NCCP
education  x
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

education  x

 

more from the adviser
YBR home loans 850x380 ta

Breaking News

YBR Home Loans flags digital pivot, broker expansion

The major brokerage has launched a digital mortgage broking busin...

stressed woman ta

Breaking News

‘Perfect storm’ of trouble ahead for SMEs

An SME lending company has warned that many retail and supplier b...

uptick

Breaking News

Wisr hits high for new loans

The ASX-listed personal lender wrote $132 million in new loans du...