Bank announces broker accreditation changes

Reporter 10:32 AM, 16 Jul 2018 Comments 4
— 2 minute read

A subsidiary of a major lender has announced changes to its accreditation requirements for new brokers, which it has said reflect “evolving industry practice and regulator expectations”.

Following recent changes to its broker commission structure, Commonwealth Bank (CBA) subsidiary Bankwest has announced new accreditation requirements, along with revised mentorship standards.

Bankwest will require all new accreditations and brokers transferring to a new aggregator to:

hold a Certificate IV in Finance and Mortgage Broking
attain a Diploma of Finance and Mortgage Broking Management within 12 months of receiving initial accreditation
hold two years’ relevant industry experience or have an MFAA or FBAA accredited mentor and return a signed Bankwest Mentoring Agreement
provide a police check that is less than three months old

The bank noted that the changes do not apply to brokers already accredited or to brokers that have already applied for accreditation.

Further, the non-major has announced revised mentorship standards designed to make it “clearer for both mentors and mentees to understand the expectations on both parties”.

Bankwest will now require a signed Bankwest Mentoring Agreement for brokers seeking accreditation with less than two years of industry experience.

As part of the Mentoring Agreement, mentors must:

be an MFAA- or FBAA-registered mentor
review and sign off at least 12 mentee deal submissions
maintain regular contact with the mentee
co-sign written records of all mentor-mentee contact as maintained by the mentee

Mentees will be required to:

actively participate as mentee for up to two years
commit to becoming a competent loan writer
complete their diploma within the first 12 months
complete at least 12 deal submissions
maintain regular contact with the mentor
maintain current written records of communication and meeting outcomes

“These changes, along with updated commission structure, will ensure that, together, we align to evolving industry practice and regulator expectations to deliver better customer outcomes,” general manager of third party Ian Rakhit said.

Mr Rakhit added: “These final changes are important to all of us and they will ultimately result in a stronger and more sustainable broker industry which will continue to deliver amazing results for our customers.

“We value our relationship with [brokers] and look forward to working together to build a more sustainable industry.”

Bankwest’s announcement follows changes introduced by CBA in December 2017, which include requiring new brokers or brokers transferring to a new aggregator to:

hold at least a Diploma of Finance and Mortgage Broking Management
have at least two years’ experience writing regulated residential loans
be a current member of either the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA)
be a Direct Credit Representative or employee of an approved aggregator/head group or Australian Credit Licence (ACL) holder

More to come.