The MFAA is pushing for a legal regulatory gap to be closed, arguing that existing arrangements are creating unnecessary hurdles for consumers.
The Mortgage and Finance Association of Australia (MFAA) has urged Western Australia to recognise regulated brokers as authorised witnesses for statutory declarations.
In a letter to West Australian Attorney-General Tony Buti, chief executive Anja Pannek called for changes to address an “anomaly” she said was inconveniencing consumers and complicating lending transactions.
Under the Oaths, Affidavits and Statutory Declarations Act 2005 (WA), recognised occupations include accountants, bank managers, insurance brokers, real estate agents, and settlement agents; however, mortgage and finance brokers are not expressly listed.
Regulated responsibilities
Pannek argued brokers’ existing responsibilities supported their inclusion, citing licensing and responsible lending requirements under the National Consumer Credit Protection Act 2009 (Cth), alongside mortgage brokers’ Best Interests Duty obligations.
She added that ASIC required credit representatives to be adequately trained and competent in their authorised activities, with licensees responsible for monitoring and supervising those acting for them.
Pannek outlined that the proposed recognition would reflect the sensitive information brokers handle and the verification work they already undertake.
“As part of their day-to-day role, brokers are entrusted with highly sensitive personal and financial information. They routinely undertake customer identification and document verification processes and assist consumers through complex lending transactions,” Pannek said.
She also pointed to Commonwealth anti-money laundering and counter-terrorism financing arrangements recognising certain officers and credit representatives of Australian credit licensees for document certification.
Pannek said the mismatch could leave clients seeking another witness despite their broker having already assisted with identification and documentation.
“In practice, the current arrangements can result in a broker assisting a client throughout a lending transaction, undertaking extensive identification and verification processes and helping prepare the relevant documentation, but being unable to witness a statutory declaration required as part of that process,” Pannek said.
“The client must instead find another authorised witness solely to complete that step.”
Regional access concerns
Pannek said this additional requirement could be particularly inconvenient outside metropolitan areas, where finding an authorised witness may be harder.
“This creates unnecessary inconvenience for consumers and administrative friction in the lending process. It can be particularly relevant for consumers in regional and remote Western Australia, where access to authorised witnesses may be more limited,” she said.
The MFAA is pushing for eligibility to be extended to Australian credit licence holders engaged in mortgage or finance broking, and credit representatives authorised under an Australian credit licence who undertake that work.
Pannek framed the requested amendment as both a consumer convenience measure and an update acknowledging brokers’ regulated position within financial services.
“Recognition of mortgage and finance brokers would modernise the framework, remove unnecessary administrative friction for Western Australian consumers and better reflect the regulated role brokers now perform in the financial services ecosystem,” Pannek said.
[Related: Broker clawback costs rise in first industry-level measure]
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