The ACCC has granted interim authorisation to the Mortgage and Finance Association of Australia (the MFAA) to enable it to implement its revised Disciplinary Rules while the ACCC assesses the substantive application for re-authorisation. The ACCC also issued a draft determination proposing to re-authorise the MFAA’s revised Disciplinary Rules for five years.
The MFAA’s membership includes lenders, aggregators, brokers and associated professions such as accountants and lawyers. The Disciplinary Rules outline processes for investigation of complaints, expulsion of members and appeals against refused applications for membership or accreditation. They also include rules for the MFAA Tribunal. Broadly, the amendments seek to simplify the wording of the Disciplinary Rules, remove duplication and clarify some of the processes of the MFAA Tribunal. The MFAA’s Disciplinary Rules have been authorised since 2004 and were most recently reauthorised in 2020.
The ACCC considers that the revised Disciplinary Rules are likely to result in public benefits from increasing consumer confidence and protection by encouraging and assisting compliance with a higher standard of conduct than is required by law. The ACCC also considers that the Disciplinary Rules are unlikely to result in public detriment, including through any reduction in competition as there are mechanisms in place to mitigate the risk of inappropriate expulsions or suspensions of MFAA members, who may compete with each other.
The ACCC now invites submissions in relation to the draft determination by 2 March 2022, before making its final decision.
A copy of the ACCC’s determination is available on the ACCC’s public register at: Mortgage and Finance Association of Australia.