WA is leading the way in licensing mortgage brokers

3/12/03
New legislation to amend Western Australia's Finance Brokers Control Act will provide a blueprint for other States and Territories to introduce laws that will help protect consumers from rogue mortgage brokers and originators.
Consumer and Employment Protection Minister John Kobelke introduced the Bill to State Parliament today.
"The Gallop Government is delivering a fairer deal for WA consumers and this legislation is a response to the issues in today's market place, as well as the recommendations of the Temby Royal Commission into WA's finance broking industry," Mr Kobelke said.
"Our new laws will help guide other States, which at present do not have any licensing for finance brokers and mortgage originators."
The Minister said the Federal Government's failure to provide that protection, through the Australian Securities and Investment Commission, had forced the States to introduce their own measures to protect investors from shonky practices.
While WA had no choice but to retain the Finance Brokers Control Act, the Bill abolishes the Finance Brokers Supervisory Board and makes the Commissioner for Fair Trading responsible for the licensing of finance brokers and the day to day administration of the Act.
"The commissioner will have the power to suspend a broker's licence for up to 60 days, pending disciplinary action," Mr Kobelke said.
Other elements of the new Bill include: increased powers for the commissioner and investigators, amending the definition of 'finance broker' to remove uncertainty, increases in the maximum penalties for breaches of the Act and greater protection for consumers who use the services of finance and mortgage brokers.
"I am pleased the Gallop Government has been able to act to sort out the mess the last Liberal Government left us and its gross inaction that led to the loss of millions of dollars from investors who needed consumer protection," the Minister said.
Minister's office: 9222 9211