By Jill Fraser

Are big banks abusing their market power?

On Monday night the ABC’s 7.30 Report put this question to amongst others, the Australian Institute of Professional Brokers’ (AIPB) Maria Rigoni, Yellow Brick Road’s Mark Bouris and Brand Management’s Andrew Inwood.

Prompted by Treasurer Wayne Swan’s announcement that the Government’s guarantee scheme would end on 31 March the 7.30 Report debate examined the consolidation of the banking sector and the control of the Big Four banks.

Inwood noted that the CBA and Westpac are holding between them about 50 per cent market share. He added “we’re facing a system where we have two banks dominating the market to such an extent that they’re now starting to reject deals which aren’t perfect for them”.
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By Jill Fraser for Lending Central

The FBA’s national president, Peter White says the AIPB is acting in “a cowboy fashion” and that its correspondence style is “flawed and unprofessional”.

The AIPB’s Maria Rigoni retorts with “I cannot accept responsibility for Peter White’s interpretation of the English language”.

The argument is centred around the AIPB’s invitation to the FBAA, the MFAA and the ABA to participate in an open industry discussion about bank ethics, which the AIPB claims is adversely impacting finance brokers.

White told Lending Central that the FBAA will not participate in the public forum that the AIPB is proposing because it sits on very shaky legal ground.

The basis of White’s response is based on the fact that the AIPB letter did not name the FBAA members that it is accusing of engaging in practices that are “unfair and have no ethical, moral or best business practice basis”.
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By Jill Fraser for Lending Central

The Australian Institute of Professional Brokers (AIPB) is relatively new on the scene but already it is demonstrating that it is willing to take on the big issues.

In an open letter dated 28 November and sent to the Chief Executive of the Australian Banking Association, David Bell, MFAA CEO Phil Naylor and the FBAA’s National President, Peter White the AIPB outlines broker grievances and seeks an open industry discussion.

The letter (see below) signed by AIPB co-founders Paul Flakus and Maria Rigoni is headed ‘Working Ethically with Finance Broker Professionals’.

Rigoni told Lending Central she believes that the only way to bring about positive change is by “bringing everything out into the open and if necessary having a tidal wave”.
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By Jill Fraser for Lending Central

Australian Institute of Professional Brokers’ co-founder Maria Rigoni claims an “agenda” is behind MFAA CEO Phil Naylor’s negotiations with lenders regarding volume-based accreditation.

(Refer Naylor’s interview with Lending Central 31 July - www.lendingcentral.com/2009/07/31/mfaa-goes-into-bat-for-brokers/)

Rigoni believes that Naylor’s suggestion that lenders adopt broker professionalism as criteria for quality is avoiding the real issues and capitalizing on the situation in order to push the barrow of higher education needs for brokers.

“I feel that he is gearing up the “industry” to accept that professional brokers will be required to have a Diploma in Finance/Mortgage Broking, which of course is a great revenue raising exercise for the MFAA, a Registered Training Organisation,” Rigoni told Lending Central.

“At the MFAA conference Phil stated that “down the track” a broker would be required to hold this qualification in order to retain MFAA membership.”
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By Jill Fraser for Lending Central

NAB Broker General Manager, Matt Lawler has sent a letter of apology to broker Maria Rigoni concerning an inaccurate Star rating assessment and for confusion caused by a NAB Broker Service Centre representative, who erroneously advised her that a client’s application was declined due to her low Star rating.

Rigoni told Lending Central that while she appreciates the apology she is dissatisfied with Lawler’s failure to address a number of issues raised in her letter of complaint to the MFAA, in which she accused NAB of breaching the MFAA Code of Conduct.

Her accusation is that NAB’s Star rating system, which she maintains is “volume based”, is “limiting supply of credit products” to brokers and that this will bring sections of the broker industry into “disrepute” in the eyes of borrowers.
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By Jill Fraser for Lending Central

“It’s broker abuse,” declares Australian Institute of Professional Brokers (AIPB) co-founder, Maria Rigoni referring to Firstfolio’s decision to slug ex-Lawfund brokers with a monthly administration fee on top of taking a slice off their trail.

Rigoni told Lending Central that this scenario is yet another example of a general disregard for brokers and lack of broker representation.

MR: The bottom line is that brokers are a faceless industry, which makes them an easy target for anyone who wants to hit their commission and is powerful enough to do so.

Anyone who is doing it tough and wants extra money immediately targets the poor broker.

The AIPB has taken the issue of clawback to ASIC and the ACCC, both of which says it’s not in their jurisdiction and to (Superannuation and Corporate Law Minister) Senator Nick Sherry.
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By Jill Fraser for Lending Central

The MFAA’s upcoming round table discussion between aggregators and lenders, which has been called to address industry issues, has been declared a charade.

Citing a lack of broker representation at the meeting Australian Institute of Professional Brokers (AIPB) co-founder, Maria Rigoni maintains that aggregators are not independent enough to represent brokers.

Referring to next Tuesday’s summit as a “get together that makes it look like we’re doing something for brokers” Rigoni says yet again brokers are being excluded from a significant industry decision-making process.

The crisis in service to brokers and the subsequent departure of growing numbers of brokers from the industry will be one of the main items on the agenda but Rigoni’s request to be included was declined.
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Life for Gary Smith, director and founder Aussiewide Financial Services, has changed dramatically over the past 12 months.

The Geelong-based broker’s business has undergone a 35 percent cut in income and like so many other brokers who see themselves as victims of lenders’ ruthless commission slashing strategies, he is concerned about rumoured further cuts.

Cuts to brokers’ commissions has always been on the cards but Smith was convinced that if this did occur only part-time brokers would be affected.

“I thought they would have looked after brokers who put in good, solid business but I was wrong in my assumption, he says.
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“One voice for brokers” is the catch cry of the spokesperson for the new industry body for brokers, Maria Rigoni, finance broker and director at Universal Wealth Management.

There has been an overwhelming response to the announcement that the new organisation, the Australian Institute of Professional Brokers (AIPB), has been registered with the ASIC.

Lending Central spoke to Rigoni about the role and goals of the AIPB.

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