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 Will Boran_Fogarty
In 2008, too many news stories have related to the global credit downturn and the woes it has brought us all - interest rate increases, grocery and petrol prices escalating, share prices falling, low super returns and the national market for residential property has softened.
Given the current economic climate, many may be wondering if there is any good news at all – the answer is yes.
On June 3, Senator Nick Sherry, the Minister for Superannuation and Corporate Law, released the Financial Services and Credit Reform Green Paper outlining new initiatives to nationally regulate financial services under a single national regulation. The two peak industry bodies, the MFAA and FBAA, representing more than 17,000 Australian finance brokers, also support the concept.
In an interview on ABC’s Lateline Business last June, Senator Sherry pointed out that the two most important reasons for transferring state-based regulation to a single national regulation were:
* A national market is more efficient and cost effective for business if it has only one set of regulations and rules
* There are currently many areas in state regulation -- including margin lending and mortgage broking -- where there is a mishmash of regulation or no regulation at all.
The Green Paper defines, or proposes to define, margin loans as financial products, thus bringing them under the control of the Corporations Act and ASIC.
In addition, new SA real estate laws were introduced in SA last July to protect buyers and sellers:
* Under the new laws, designed to combat underquoting, both agents and vendors are required to record their expected price.
* Advertisements must use the higher amount and can only vary by 10 per cent.
* Auction practices will also change, with people not allowed to bid unless they have registered with the agent prior to the auction.
Consumers should seek out and only use accredited professionals who are members of the MFAA or FBAA as they are required to meet minimum education standards, have adequate industry experience, be covered under current Professional Indemnity Insurance and belong to an ASIC approved complaints scheme.
William Boran-Fogarty, Managing Director – Fintegrity Financial Services Pty Ltd
AIFS – Associate of the Institute of Financial Services
MFAA - Accredited Mortgage Consultant
SEQUAL Accredited Reverse Mortgage Consultant
DISCLOSURE AND DISCLAIMER
The writer is an independent South Australian Finance Broker and accredited member of the MFAA (Mortgage & Finance Association of Australia). The writer is not an employee of any lender and does not own shares in any lender. The views and information provided in this article are solely the opinion of the writer and under no circumstances whatsoever constitutes any form of financial advice. Anyone seeking further details is encouraged to contact the writer or seek their own independent advice.
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