Following PICA's warning, the MFAA says brokers already operate under strict laws
The Mortgage and Finance Association of Australia (MFAA) has backed the professionalism and compliance of mortgage brokers following claims by the Property Investors Council of Australia (PICA) that some industry participants may be engaging in unlicensed financial advisory practices.
In a statement shared with MPA on Monday, MFAA chief executive officer Anja Pannek said brokers “operate in one of the most highly regulated parts of the financial services sector”, adding that the profession functions under the Best Interests Duty introduced by government reforms.
“I believe mortgage brokers take their client obligations very seriously,” Pannek said. “This is highlighted clearly through the low level of complaints we see going to AFCA.”
Pannek acknowledged that social media has become an essential communication and engagement platform for brokers but emphasised the need for responsible use. “It’s important to note that social media is an important communication and client engagement tool for brokers,” she said. “We (the MFAA) provide resources and support to guide our members when developing social media content and encourage them to do so responsibly and effectively.”
The association noted that they offer guidance materials, including advertising and marketing guidelines, which are available through the MFAA Member Portal’s Broker Toolbox.
The response comes after a MPA article published earlier the same day highlighted PICA’s warning about “clear evidence” of questionable practices among some buyers’ agents, brokers, accountants, and property investment firms. PICA chair Ben Kingsley raised concerns about operators promoting “quick profits through residential property” and potentially offering investment advice without the proper licensing.
PICA’s remarks followed Macquarie Bank’s decision to restrict home lending to trusts and companies amid the rise of social media strategies promoting “unlimited borrowings” through complex structures. While PICA viewed the move as a positive step toward protecting consumers, some broker groups noted that most in the industry already comply with responsible lending and licensing rules.
Both the MFAA and the Finance Brokers Association of Australia have reiterated that brokers remain committed to upholding legal and ethical standards.
