A further discussion draft of the WA finance brokers Code of Conduct was recently released for comment. Submissions are due by 9 August 2006.
Use the following links to access:
gadens lawyers summary of the latest draft of the Code
read more...draft submission
read more...The attached documents have been revised from earlier versions you may have seen. The main changes since the early version relate to clause 9.1 and 9.2 dealing with disclosure of commissions by "non-bank lenders".
Many of the submissions previously made by the MIAA / Gadens Lawyers have been incorporated into the draft Code. Most commentators seem to agree that the Code now forms a workable regime except for a few remaining issues.
The key outstanding issue is the requirement for commission / margin disclosure by "non-bank" lenders who distribute direct to the public (ie not through brokers). Remember, the Code applies to non-UCCC loans as well as UCCC loans. Unless addressed this could have a major impact on mortgage trusts and securitised lenders.
Example:
Big Mortgage Trust is managed by Trust Manager. Trust Manager markets loans direct to borrowers. Under clause 9.6, Trust Manager would be obliged to disclose their commission/margin. This is inappropriate as these trust managers are properly viewed as the lender's manager and so part of the "lending team".If you want to contribute to the debate, please email either:
Jon Denovan [email protected]
Calvert Duffy, MIAA: [email protected]
The Code does not deal with the requirement to be a licensed finance broker in WA. Submissions regarding the impact of licensing on (primarily East Coast based) mortgage managers, trust managers, securitisation managers, and aggregators are being progressed separately.
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Sydney |
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Jon Denovan |
t (02) 9931 4927 |
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Vicki Grey |
t (02) 9931 4753 |
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Melbourne |
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Peter Grotjan |
t (03) 9617 8538 |
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Danny Moore |
t (03) 9617 8596 |
This publication is provided to clients and correspondents for their information on a complimentary basis. It represents a brief summary of the law applicable as at the date of publication and should not be relied on as a definitive or complete statement of the relevant laws.
