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FBAA warns on financial literacy schemes

by Huntley Mitchell7 minute read

The FBAA has warned regulators that any push towards a broad-based financial literacy program for borrowers will not offer “tangible, measurable outcomes”.

FBAA chief executive Peter White said he continues to engage regulators and communicate brokers’ misgivings about relying solely on broad-based financial literacy schemes.

Mr White said he recently informed ASIC about two new “effective and measurable” financial literacy systems for borrowers which will enter the marketplace shortly and provide best practice for ongoing broker education.

“These new programs engage borrowers and brokers in an interactive online discussion forum, but more importantly, are a means to measurably prove an understanding of the basics of lending,” he said.

Mr White’s ongoing discussions with ASIC form part of a regular meet-and-greet with other regulatory heavyweights to highlight the needs of the broking sector.

He recently met with the federal shadow minister for financial services and superannuation to talk through various lending and broker-based issues and other matters relating to lenders mortgage insurance.

Meetings are also planned between Mr White and the new Assistant Treasurer to highlight areas needing completing and/or improving under the National Consumer Credit Protection Act 2009.

[Related: Banks urged to reform commission clawbacks]