Industry speaks out against more regulations for brokers


There are calls to increase broker regulations after another Melbourne broker recently lost their credit licence.

The cancellation came after the broker failed to verify documents in support of loan applications. 

It comes after ASIC banned two brokers last month for three years.

The broking industry is already highly regulated and it can be argued these are the actions of a small minority rather than the industry as a whole. 

Oxygen Home Loans general manager Alan Hemmings told The Adviser that ASIC, aggregators and broker groups needed to keep an eye on brokers. 

“We’re probably more heavily regulated than most other industries. In any industry you’re always going to have an element of people who don’t do the right thing.”

Director of All About Financial Services John Martin, also speaking to The Adviser, agreed that aggregators could take more responsibility for their brokers. 

“In any industry, you’re always going to have your rogues who just won’t conform,” he said. 

“I think that the regulations that have been put into place are significant as long as [brokers are] policed correctly.” 

MFAA chief executive Phil Naylor made a good point to The Adviser, when he also spoke against increasing regulations for brokers. 

“The fact we’re getting brokers being banned indicates that the regulations are working,” he said. 

“I would be much more concerned if the evidence was showing that no one was being banned.”


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