The WA Minister for Consumer Protection has announced that a revised finance brokers Code of Conduct is anticipated to commence on 29 June 2007.
The final form of the Code of Conduct has been released to allow industry time to prepare for its commencement. It is likely that the Code will be brought into operation by virtue of a regulation with effect on 29 June 2007.
Gadens has prepared a summary of the Code of Conduct for the MFAA which can be accessed by clicking here
The key initiatives of the Code are to set out:
- general obligations for all finance brokers to act in the best interest of the borrower; and
- a disclosure regime for restricted finance broking activities (A, B, and C class licenses) under which brokers need to obtain a written acknowledgement (the MFAA recommends a finance broking contract). These disclosures are divided into a first disclosure and a second disclosure. Depending on their business model, brokers may be able to combine the disclosures into a
