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The ACCC has granted interim authorisation to allow the Mortgage and Finance Association of Australia (MFAA) to continue to administer disciplinary rules enforcing its Code of Practice.
The interim authorisation will give the MFAA time to review its Code of Practice in line with recommendations of the royal commission, several of which relate to the mortgage broking sector.
Authorisation by the ACCC removes any risk that the MFAA’s disciplinary rules, which allow the body to expel members for misconduct, may breach competition provisions of the Competition and Consumer Act.
The MFAA earlier applied for reauthorisation of its rules with proposed minor changes, and sought interim authorisation as part of that process. Its current authorisation ends in June 2019.
Following the final royal commission report, the MFAA amended its application for re-authorisation on 31 March 2019 to also seek interim authorisation of the existing disciplinary rules, to allow it time to review its Code.
The ACCC granted five-year authorisations for the MFAA’s disciplinary rules in 2004, 2009, and 2014.
The organisation grants an authorisation when it is satisfied that the likely public benefit resulting from the conduct outweighs any likely public detriment.
ACCC Commissioner Roger Featherston explained, “Once the MFAA has made these changes, a process that we understand will take three to six months, we will assess the new disciplinary rules and decide whether to authorise them.”
The ACCC may review its decision on interim authorisation at any time. The ACCC's decision in relation to interim authorisation should not be taken as an indication of whether or not final authorisation will be granted by the ACCC.
