Any individual who commits wrongdoing should not be able to move freely within the industry, says industry veteran
Loan Market executive chairman Sam White is calling for the introduction of a “bad brokers” registry list to remove those who act outside industry standards and commit fraud. This list would be managed by the Combined Industry Forum (CIF), he said last week while revealing other suggestions for reforming the industry.
The registry, however, is not a new idea, according to FBAA executive director Peter White. The FBAA has been talking to ASIC about it over the past year and a half, but it’s tricky. “The parameters around what would determine a ‘bad broker’ need serious discussions,” Peter White said. “You need to be careful that commercial interests do not cloud the facts, and that you don’t create an anti-competitive environment that wrongly prohibits someone’s right to earn an income.”
In an interview with MPA, MFAA CEO Mike Felton said that whilst most brokers do the right thing, it is in everyone’s interest that “bad brokers” should be removed from the industry. However, the process should be "fair, supported by evidence and achieved in a manner that does not pose risk to legitimate brokers or the organisation managing the process".
Felton added that the introduction of CIF’s unique identifier, outlined in its report last year, will assist greatly. The focus should also not only be on brokers, he said. To keep problems from being perpetuated, the industry should also monitor “those shifting from banking, financial planning or other financial services”.