A tale of two brokers: why compliance matters

Broker 1. Passes with flying colours, business and future intact

Broker 2. Doubtful process and no verifications - likely fail and business future in doubt.

On the same day this week, Vow and a funder jointly reviewed the operation of two brokers aggregating under Vow. One passed the review with flying colours and the other failed on nearly all points. The first broker was a credit representative of Vow and the second held an Australian Credit Licence.

Broker 1. Had attended our compliance workshops annually and webinars and was completely up to date on broker protections and the latest trends in compliance and process. Her clear answers to every potential concern were great to witness and validated our training regime. Where a potential fraud was queried the broker had our clear process of verification and notes. This broker walked out of the meeting with her reputation and business intact.

Broker 2. Held her own credit licence and had attended no training or compliance updates. This broker made just about every mistake possible. i) All applications at or below HEM. ii) No evidence of enquiry into client expenses. iii) No verification process for PAYG client who provided fraudulent payslips. iv) ID unreadable. v) No Veda check on commitments. This broker walked out of the meeting and has now lost her accreditation with that funder, putting her business future in doubt.

With this example in mind we take this opportunity to invite all holders of Australian Credit Licences to our Compliance workshops, where the latest market trends in fraud, broker issues and funder/ regulator requirements are covered. Our focus is to provide our broker clients with the tools to protect their reputation and business.

We encourage everyone to come along to our upcoming workshops - they are an engaging and informative way to get on top of the issues and earn 3 CPE points.