The ACCC has decided to grant authorisation to the Mortgage and Finance Association Australia (MFAA), for two years until 21 March 2022, to allow it to continue administer its disciplinary rules, which enforce the MFAA’s Code of Practice.
The Code of Practice establishes standards of conduct and behaviour for MFAA members — the majority of which are mortgage and finance brokers, loan writers, lenders and loan aggregators — as well as mechanisms for suspending or expelling members.
Changes to the disciplinary rules since they were most recently authorised in 2014 for a five year period include strengthening MFAA members’ rights to appeal suspension and expulsion decisions and the power of the MFAA’s tribunal in respect of enforcing the disciplinary rules.
MFAA sought authorisation for a shorter period of two years, due to expected reforms to the mortgage and finance industry following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. MFAA has stated that it will approach the ACCC as necessary to accommodate any relevant regulatory or legislative reforms into its disciplinary rules.
The ACCC considers the revised disciplinary rules are likely to result in public benefits from increasing consumer confidence and protection by enforcing compliance with a high standard of conduct beyond what is required by law. The ACCC considers that any public detriments, including from any lessening of competition, are unlikely to arise from the proposed conduct as there are mechanisms in place to mitigate the risk of inappropriate expulsions or suspensions of MFAA members.
More information about the ACCC’s decision is available on the public registers at: Mortgage and Finance Association of Australia.