ACCC adds power to MFAA's rules

In what may represent a precedent for other organisations operating in the financial services sector, the Australian Competition and Consumer Commission (ACCC) has granted conditional immunity from prosecution to the Mortgage and Finance Association of Australia (MFAA) with respect to imposing its disciplinary rules.

In a ruling handed down earlier this week, the ACCC said its authorisation to the MFAA provided immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act.

It said broadly, the ACCC was empowered to grant such immunity when it was satisfied the public benefit outweighed any public detriment.

The rules sanctioned by the ACCC form part of the MFAA’s governance regime that requires members to comply with its code of practice and constitution and provide for the investigation of complaints against members and for penalties to be imposed if a member is found to have engaged in misconduct or acted in breach of the code.

Commenting on the move, ACCC chairman Graeme Samuel said the governance regime set a professional and ethical standard of conduct in the mortgage and broking industry, which the ACCC considered acted as a significant deterrent for MFAA members to act inappropriately.