FINANCE BROKERS - WHAT WE WANT

Consumers using finance brokers should have the same protections as those accessing credit directly from the provider. This principle underpins our policy and should be the basis for any “test” of whether regulation will be effective.

 

Our preferred regulatory option is therefore that finance brokers should be deemed to be the agent of the credit provider. This would address the range of problems that some consumers experience with finance brokers.

An alternative approach would be the licensing of all finance brokers and intermediaries (for example loan introducers and debt reduction services). Conditions of holding a finance brokers licence should include:

 

• Appropriate level of professional indemnity insurance;
• Appropriate training standards;
• Requirement for fair, honest and efficient conduct;
• Membership of an industry dispute resolution scheme (that complies with ASIC requirements);
• Code of Conduct, that includes provisions to ensure that the outcome of a dispute for a consumer is similar to the likely outcome (under consumer credit and other laws) if they had originally dealt directly with the lender.

Any unlicensed finance broker would be deemed to be the agent of the lender.