Mortgage and finance body able to discipline members engaging in misconduct

The Mortgage and Finance Association of Australia has been granted conditional authorisation to enable it to continue to give effect to its Disciplinary Rules, ACCC Chairman, Mr Graeme Samuel, said today.

The MFAA has approximately 13,000 members Australia wide including mortgage brokers, finance brokers, mortgage managers, lenders (bank and non-bank) and originators, lawyers, accountants and educational institutions associated with the industry.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.  Broadly, the ACCC can grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The rules allow the MFAA to enforce the professional standard of conduct set out in its Code of Practice and Constitution to ensure that its members are compliant.

"The ACCC considers that the rules, which provide for the investigation of complaints against members and the imposition of a range of sanctions by the MFAA Tribunal, result in a public benefit.  These Rules are important as they operate as a significant deterrent against MFAA members acting inappropriately."

The ACCC has granted authorisation subject to a condition that the MFAA delete a rule which allows the MFAA's board to impose sanctions on a member regardless of any other action being taken by the MFAA Tribunal or at law. The ACCC considers this rule undermines the role of the MFAA Tribunal.