Brokers should enjoy greater volumes when licensing comes into play next year.
According to a number of brokers, licensing should improve the way the industry is seen by consumers, which could lead to greater business opportunities.
“Licensed brokers will be seen by consumers as professional, which will ultimately benefit our bottom line,” Smartline’s Ian Simpson told The Adviser.
“While compliance obligations will be harder and more time consuming than what many of us are currently used to, I think it licensing will be very worthwhile in the long run.”
And Mr Simpson is not alone in this sentiment.
Smartmove’s Simon Orbell agreed that licensing would improve professionalism and the way brokers are seen by consumers.
But while Mr Orbell believed licensing would create bottom line benefits, he said proving client suitability for a product could become an arduous task if it is not properly controlled by ASIC.
Standards for disclosure are still not widely available to brokers, which is leaving many to ponder the worst case scenario including a blowout in client interview times and cumbersome disclosure arrangements.
Aussie Home Loans Stephen Porges yesterday called on ASIC to deliver a simple “disclosure model”.