The head of the Finance Brokers Association of Australia (FBAA) continues to engage financial regulators and communicate brokers’ misgivings about relying solely on broad-based financial literacy schemes. FBAA Chief Executive Officer Peter White has held face-to-face meetings with financial literacy executives from the Australian Securities and Investment Commission (ASIC) and talked through the association’s position on financial literacy.
“We believe any push towards a broad-based financial literacy program for borrowers is not super effective because it does not offer tangible measurable outcomes.”
Mr White told ASIC about two new streams of effective and measurable literacy systems which will shortly enter the marketplace for borrowers and provide best practice for continuing broker education.
“These new programs engage borrowers and brokers in an interactive online discussion forum but more importantly, are a means to measurably prove an understanding of the basics of lending.”
Mr White’s ongoing discussions with ASIC forms part of a continual meet-and-greet he is having with regulatory heavyweights to highlight the needs of the broking sector. Other discussion points with ASIC include the evolving needs in motor dealership vehicle finance.
Mr White also met the Federal Shadow Financial Services Minister to talk through various lending and broker based issues and other matters relating to Lenders Mortgage Insurance.
Meetings are also planned between Mr White and the new Assistant Treasurer to highlight areas needing completing and/or improving under the National Consumer Credit Protection Act.