Warning of AFSL complexity distorting mortgage broking
The Federal Government has been warned not to make the licensing requirements for mortgage brokers so cumbersome and onerous that they drive out small practitioners.
The call has come from the Mortgage and Finance Association of Australia in a submission to the Government on the legislative framework making up the proposed new National Consumer Credit Protection Bill.
The chief executive of the MFAA, Phil Naylor, said that while his organisation was satisfied with the overall thrust of the legislation, it needed to recognise that the vast majority of mortgage brokers practising today were small operators.
“We need the Government to ensure that the licensing requirements are not cumbersome or onerous and do not prevent these small operators from staying in business,” he said.
Naylor said it was important to ensure that the new consumer credit laws did not fall into the trap of being as complex as the existing Australian Financial Services Licensing processes.
“The complexity of the AFSL process militates against the licensing of small operators – a situation we need to avoid in order to promote competition and consumer choice,” he said.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.