Media Statements

While the banking royal commission was a challenging time for finance brokers, it helped the industry develop a united purpose, according to the managing director of the Finance Brokers Association of Australia (FBAA).

Peter White said the royal commission highlighted some of the major issues that will affect brokers into the future and believes the key to future success is to stand together with a common, industry-wide objective.

He said the recent FBAA National Industry Conference held on the Gold Coast, and other events like it, are vital to the sector’s health and believes the conference will be even more important on both professional and personal levels in the future.

“There is no doubt that while the industry collectively has worked hard to overcome recent challenges, different issues will arise and this is when a collaborative and unified approach is necessary.”

Reflecting on the recent FBAA conference – the first since the royal commission – he said the theme, “challenge the future”, was more relevant than ever before.

“The conference keeps our members and industry connected and removes the fragmentation of geography as brokers from all around Australia come together, but it also allows brokers to support each other and this cannot be underestimated in the current environment.”

He said the association intentionally took a holistic approach at the conference, because personal and business support go together.

“The address by mental health advocate Anthony Hart was possibly the most interactive and popular we’ve ever had, and this tells us what brokers need right now.

“Most brokers are small businesses and don’t have a large support network, and let’s remember that many have spent a lot of this year worried about their futures.”

Mr White said the importance of togetherness was highlighted at the association’s annual Awards of Supremacy, part of the conference’s gala dinner.

“Recipients were more emotional this year and it was clearly a big deal to be recognised for hard work and success.

“Standing with one another, championing one another – this is what our industry is about and I believe we must continue to build unity and a common focus.”

The Finance Brokers Association of Australia (FBAA) has revealed its 2020 board members, state presidents, vice presidents and councillors.

Announcing the board, FBAA managing director Peter White said the association is well placed to tackle any challenges the future may bring, and is fortunate to have a large talent pool of experienced and knowledgeable people who can steer the FBAA in the right direction.

At the recent AGM, Tony Carter was reappointed as chairman and Chris Szigeti as vice chairperson and DRS chair. Kim Szigeti was reappointed as company secretary while Rick Nieuwenhoven, Steve Rasmussen and Angus Gilkeson remain directors. Angelo Lauro was appointed as a new director and Mr White also continues on the board as managing director.

“This is a team who understands our members and their needs because they are all successful brokers themselves. Our newest member Angelo Lauro will slot in with ease after many years of broking in the motor sector and his involvement with various committees,” Mr White said.

We welcome two new state presidents being Nick Wormald for New South Wales and Bernard Desmond for Victoria. Continuing in their existing state president roles are Christine Green for Queensland, Trent Carter for Western Australia, and Joff O’Shannessy for South Australia.

Mr White said the industry continues to evolve and the expansion of online options, as well as increased scrutiny following the royal commission will present plenty of challenges to the industry.

“I am proud that the FBAA was born over 26 years ago as a grass-roots, member-focused organisation that understands the needs of members, and I can assure all members that as your board we are committed to serving you and championing your needs in the years to come.”

He said the FBAA will continue to take a national industry-wide approach to ensure that brokers in all states benefit from personal development and other initiatives.

Lower interest rates will be wasted and ineffective unless banks overhaul their credit policies, tightened following the banking royal commission, according to the Finance Brokers Association of Australia (FBAA).

Managing director of the peak body Peter White says while the focus has been on the RBA’s interest rate cuts, this alone won’t stimulate the housing market as banks are using unrealistic credit criteria to push legitimate buyers out of the market.

Speaking from the association’s annual industry conference – the first following the banking royal commission – Mr White said rigid credit policies were disadvantaging borrowers.

“We need a more considered approach to credit policy because right now there are borrowers with the capability to pay a mortgage that are being rejected for a variety of reasons.”

He said the Commonwealth Bank recently reduced the floor rate – or buffer between the actual interest rate and the rate used to calculate affordability – presumably because it was losing business.

“Banks are being forced to act because the market is flat, and we will no doubt see that other banks will follow.

“The FBAA has said before that the buffer used by banks is ridiculously obstructive to borrowers.”

He also said that small business people are struggling to obtain finance due to over tightened banking policies.

“In no way am I suggesting we loosen the credit criteria, but in an economy that needs stimulating, interest rate cuts are only a part of the solution.

“Denying legitimate and credible borrowers a loan due to credit policies that make no sense doesn’t help anyone.”

Greater accountability and further transparency for finance brokers including the best interest duty presents a unique opportunity for industry growth, and smart brokers will embrace it, according to managing director of the Finance Brokers Association of Australia.

Peter White says the industry should take advantage of the increased scrutiny to build greater trust with consumers, and believes brokers who have a positive, enthusiastic and customer-focused attitude will benefit.

He cautioned brokers not to be distracted by “white noise” and negative commentary about the sector and to be encouraged rather than disheartened in the aftermath of the banking royal commission.

“Finance brokers have been through a year where many misinformed commentators were against us, some lenders tried to exploit us for their own gain, and a royal commission didn’t get it right, yet we still command the trust and support of our clients, regulators and government,” he said.

“And the reason is simple – brokers do a bloody good job and care for their clients in a way no bank can, and consumers know this.”

Mr White said he continues to meet regularly with senior members of the Federal Government and these meetings are encouraging.

“The Government understands the important role of brokers and also knows that the worst scenario for Australia is to give more monopoly power to the big banks.

“I’m confident we will see policies that allow our industry to thrive and grow.”

Mr White says the best interest duty and any reviews won’t hurt anyone who is doing the right thing.

“My message to brokers is simple: keep acting in the customer’s best interest, be transparent, provide excellent service and ignore the inaccurate and self-serving commentary.

“Serving customers is our priority, particularly at a time when trust in the banks is still low.”

The Finance Brokers Association of Australia (FBAA) has welcomed the Federal Government’s announcement of an inquiry by the competition watchdog into the refusal by banks to pass on interest rate cuts in full to customers.

FBAA managing director Peter White said asking the Australian Competition and Consumer Commission (ACCC) to examine the entire banking sector was “appropriate”.

“Considering the fallout from the Royal Commission, it’s time for all banks – not just the big four – to be far more transparent and accountable,” Mr White said.

“I’ve been calling on the banks for a long time to pass on interest rate cuts in full, and of course the latest was just two weeks ago.”

Since January, the Reserve Bank has reduced the official rate three times to a new record low of 0.75 per cent.

“The banks have been playing some sort of seesaw game where they will pass on a little bit this time and then a bit more – or a bit less – the next time,” Mr White said.

“There’s a pattern of behaviour here that Australians are clearly not happy with.”

He also rejected claims by the banking sector that the interest rate cuts were not being passed on in full because of increasing costs.

“That’s not right because the banks are being hit with penalties for breaches uncovered through the Royal Commission, and through investigations by the Banking Executive Accountability Regime (BEAR).

“Trying to balance the books by passing on these penalties is not something that should be borne by borrowers.

“You would think given the commentary and the whole focus around the banking sector, that they would be doing their utmost to regain trust with the public.

“This inquiry provides an opportunity for banks to be transparent around their decision making and how they balance the needs of the community,” he said.

The ACCC will deliver a preliminary report by March 30 next year with the final report due six months later.

“Banks must immediately pass on these savings and the reduction of interest rate in full.”

“Banks should not be using this decrease as a mechanism to ‘buy new business’. In the past existing borrowers have waited weeks and months for any benefits whereas new borrowers are offered the new rate immediately. This should be passed to existing mortgage holders now.”

“I’d also like to see the banks pass these interest rate reductions onto credit card holders as well as all variable rate loan facilities.”

“My advice to borrowers is to take advantage of these extremely low interest rates by leaving their repayments at the current levels and not reducing their payments. This way they will pay off their mortgage quicker.”

The head of Australia’s peak body representing finance brokers has called for the Australian Banking Association (ABA) to appoint an independent chair to help restore public and industry trust in the banking sector.

The ABA recently announced CEO of the Commonwealth bank Matt Comyn would take the chair, replacing ANZ CEO Shayne Elliott.

However managing director of the Finance Brokers Association of Australia, Peter White, says it’s time to overhaul the big four banks’ rotation system of the chair.

“The royal commission exposed the dishonesty, gross breaches of trust and lack of transparency by the banks.

“Until there is greater governance through independent, non-conflicted eyes, trust in banks will always be questioned due to their commercial self-interest.

Mr White said consumer trust in finance brokers was high, resulting in the majority of mortgages being written through the broker channel, yet “banks are known to be using their branch networks to churn broker portfolios causing clawbacks to brokers”.

“Let’s be real – the royal commission unsuccessfully attempted to make finance brokers the scapegoat while giving banks a stern talking to but effectively doing nothing to change the system.

“While it exposed the misconduct of banks, little changed and the banks are laughing.”

He explained finance brokers work closely with lenders and want a good relationship with all banks, but goodwill has to go two ways.

“Appointing an independent chair of the ABA is a step in the right direction if the banking sector wants to restore confidence and trust.”

With the roller coaster ride that was the banking royal commission now in the past, Australia’s largest annual conference for finance and mortgage brokers will be held on November 8 at one of the country’s premier theme parks, with the focus only on the future.

The Finance Brokers Association of Australia (FBAA) is expecting about 1000 brokers to attend this year’s National Industry Conference at Sea World on the Gold Coast, with the theme “challenge the future”.

FBAA managing director Peter White said while the industry successfully navigated the royal commission findings, “we will continue to be challenged due to changes in customer behaviour, technology and regulation.”

“We must rise to this challenge and pave the way for an innovative future for brokers and our customers,” he said.

The conference has grown to be the “must-attend” industry event and this year’s speakers include economist Stephen Koukoulas, futurist Steve Tighe, mental health advocate Anthony Hart, social media and small business marketing strategist Carolyn Miller and ASIC’s front-line team.

Mr White explained that while it was free for FBAA members, all within the industry including brokers who are not members are encouraged to come.

“This is for the entire industry including brokers, BDMs, lenders, small businesspeople and senior executives.”

However he added that it was also a time for industry professionals to network and renew relationships with others across the country, and for people to enjoy a well-earned break.

“Being a one day and night event, many choose to take advantage of the beautiful Gold Coast and spend time with family.”

The conference will be followed by a gala dinner – a night second to none that must be experienced to be believed – incorporating the ‘Awards of Supremacy’ recognising broker achievements. Nominations for the awards close on September 9.

Mr White said tickets are on sale through the FBAA website.

The Finance Brokers Association of Australia (FBAA) managing director Peter White today welcomed the release of the ASIC report, Looking for a mortgage: Consumer experiences and expectations in getting a home loan.

“I’m really pleased with the outcome of this ASIC research,” Mr White said.

“Like any industry, we are always looking at how we can possibly improve.”

But Mr White “totally dismissed” claims by consumer group CHOICE in regards to the ASIC report.

“Once again, this group has highlighted their disturbing lack of real understanding into the broking sector,” he said.

“They are creating issues that simply don’t exist.

“I thought CHOICE was meant to provide an independent and unbiased assessment, yet here they are again making extreme, unsubstantiated claims.

“Our industry is completely supportive of best interest duty,” he said.

Mr White said brokers always looked to give potential borrowers the very best range of options.

“I believe most borrowers are given between four and six options,” he said.

“If brokers are only given one or two options, then that needs to be looked at.

“In reality, depending on the borrower’s circumstances there may only be one or two options, so it would be wrong to make a generalised statement without knowing all the details of those specific cases.

“But if we need to, let’s up our game as an industry.”

Yet another attack on mortgage brokers from consumer group Choice should not only be dismissed outright, but reveals the groups disturbing lack of real understanding about the broking sector, according to the Finance Brokers Association of Australia (FBAA).

FBAA managing director Peter White said criticism of broker training is unfounded, revealing that training never stops.

“This myth being peddled by Choice and a few others at the recent royal commission that a short online course can qualify someone to be a finance broker, is completely false.”

He said the industry sets a high bar for finance brokers and the initial course is just the start.

“A Certificate IV is the right entry point to a continual lifetime of learnings, including mentoring for two years minimum which can be extended if necessary.

“Continuing professional development goes forever at a minimum 25 hours per year for FBAA members which is higher than the benchmark set by ASIC.”

Mr White said theory is only a part of the training and learning on the job under guidance is an important part of development.

“Choice is putting too much emphasis on ‘book study’ and their comments show they have little clue about the facts.

“People enter our industry from all walks of life and regularly come from a near zero base of industry knowledge, so it is vital that training covers all forms of consumer lending rather than just mortgages.”

“Having a proper and well-founded base line of knowledge is all important in learning anything new, and you need to know the basics first. This way what is built on top is solid and won’t collapse.”

He said this is not the first time Choice has got it wrong on broker training.

“Choice provides a valuable service for consumers in reviewing vacuum cleaners and washing machines, and they need to stick to what they know” he said.