Article Archive

CEO's December 2003 Report National Regulation:
On November 12th Peter Carblis and I met with Margaret Raffan and Diana Holy of NSW Fair Trading to discuss the importance of competency based training to underpin any future uniform national regulation. Margaret is Chairperson of the Steering Committee that will prepare policy recommendations for presentation to the Ministerial Council of Consumer Affairs next March.

In response to a Discussion Paper distributed by Margaret to key industry stakeholders in October, the FBAA made a submission on a variety of issues including PI Insurance, the loan purpose declaration, falsification and misrepresentation, alternative disputes resolution, appropriateness of loan recommendations and disclosure requirements. The FBAA submitted its new Code of Practice as the basis of any proposed mandatory Code introduced by Government regulation. The Code can be inspected at www.financebrokers.com.au.

Education:
A meeting took place on November 11th with Gail Fitney and Tess Julian of Ratio Pty Ltd in Sydney, who are compiling the competency standards and other generic content for a comprehensive finance broker training course on behalf of the National Finance Training Industry Advisory Body. The FBAA has played a leading role in recommending practice standards and procedures considered essential for brokers operating in all sectors of the finance industry.

The draft competency standards can be inspected at www.nfitab.com.au/tpr. Gina Hockley of NFITAB expects the standards and course qualification to be submitted to the Australian National Training Authority by March 2004. Subject to State Ministerial approval from all jurisdictions, it is hoped ANTA Endorsement will be obtained by June 2004. The FBAA will recommend the course be an integral part of any future Government licensing regime. Recognition of prior learning and experience will enable existing practitioners to provide evidence of knowledge, competency and skill.

The FBAA has established an independent advisory panel to determine future practice standards and incorporate them into the FBAA Code of Practice and training packages when considered appropriate or necessary.

Privacy Act Form:
The new FBAA Privacy Act Form, incorporating a basic form of commission disclosure, has been listed on the FBAA website. The form was developed in consultation with Randal Dennings of the Brisbane office of Clayton Utz and has been endorsed by the office of the Privacy Commissioner. It is recommended that all members use this form in order to comply with the December 2001 amendments of the Privacy Act.

The standard FBAA finance broker Mandate has been reviewed to incorporate a more specific form of commission disclose for those members that are required to disclosure commission received from all sources in order to comply with the new CGU PI insurance policy.

FBAA Code of Practice & Disputes Resolution Service:
The new Code of Practice and Membership Application Form is now listed at www.financebrokers.com.au and all members are required to abide by the Code's practice standards by December 31st 2003. The FBAA had applied for ACCC Endorsement of the Code.

The standard FBAA broker/client Mandate form has been amended to ensure clients are made aware of the Code and the means by which complaints will be handled and disputes dealt with. Members are required to implement a complaint's handling procedure in accordance with Australian Standards AS-4269 & AS-4608. This is a requirement of members of an Alternative Disputes Resolution Scheme and will be the cornerstone of any future Government regulation.

Alternative Disputes Resolution:
A meeting was held on November 13th with Colin Neave, the Banking and Financial Services Ombudsman. Members that are required to join an ADR Scheme are now able to apply to join BFSO. The Mortgage Industry Ombudsman Service has also created a new category of membership for non MIAA members. Details of the membership criteria and fees are available in the members section of the FBAA website.

Australian Finance Conference:
The FBAA met recently with the AFC in Sydney and expressed a desire to work closely with the AFC, which represents most credit providers, and the Australian Equipment Lessors Association, which represents lenders engaged in providing plant, equipment and vehicle finance.

Together with the planned creation of the National Lender's Subcommittee, the FBAA will work cooperatively with lenders representing the full spectrum of credit products available in the finance market, specifically in regard to future regulation and education on intermediaries.