An industry association has congratulated its members for setting the highest ethical and broker behavioural standards, according to a recent ASIC data extraction.
The Finance Brokers Association of Australia (FBAA) said that at the time of its recent review and audit there had been 253 enforceable undertakings, bans, and disqualifications by ASIC against Australian Credit Licence holders and Credit Representatives since the National Consumer Credit Protection Act was introduced in 2010.
Of the 253 who had action taken against them, a mere 9.45 per cent were aligned with the FBAA with only 3.56 per cent being active members at the time of ASIC’s actions.
Peter White from the FBAA says the figures are not surprising considering the standards set by the association and the ongoing education on best practice and ethics.
“The FBAA doesn’t require members to undergo forced short or ‘compressed’ education because as a broker it is vital you first get the basics right before increasing your educational knowledge,” he said.
“It is this bottom-up approach that ensures our brokers become industry leaders and exhibit exemplary conduct.”
Mr White argued this approach results in excellent consumer outcomes, declaring the FBAA’s audit of ASIC's data against its membership base proves overwhelmingly that quality outweighs quantity.
The FBAA’s own audit also shows that nearly 90 per cent of members who have been with the association for four years or more remain with the association until they retire from the industry.
“We are constantly evolving and our members recognise this to the point that they want to stay with us for the journey,” Mr White said.
However, he noted the number of new brokers who leave the industry in the first two years is higher than he would like to see, saying support measures must continually be improved to ensure the regeneration of the broking channel.
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James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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