The Brokerage sets a new standard
Mortgage dealer group The Brokerage has raised the entry bar for its brokers with a new professional standards policy.
As well as being members of the Mortgage Industry Association of Australia (MIAA) and meeting its requirements, all broker partners of the group must now have a detailed written business plan, professional office location, website presence and a comprehensive customer retention strategy.
The Brokerage has also introduced a fee for those new to broking, with the industry averaging 30 new entrants each week.
The Brokerage director and group communications spokesman Michael Osborne said the group hoped to lift the industry’s standards by first raising those of its own brokers.
“Sitting back and waiting for regulation simply isn’t good enough,” he said.
“Consumers and lenders expect more.
“What we are saying is that we are not going to play ball with you unless you show us that you are a serious operator.”
MIAA chief executive Phil Naylor said the dealer group’s new standards were consistent with that of the association, which was pushing the Government to increase regulations.
He said the risk of an under-regulated broking industry was that the consumer might be placed in the wrong product, which could cost them greatly.
The minimum standards required by the MIAA for its members include two years experience in mortgage lending, certificate four in mortgage broking and the successful completion of an online examination.
“Over time we are intending to raise those standards,” Naylor said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
