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Point of Sale Exemption still a disadvantage for brokers

Point of Sale Exemption still a disadvantage for brokers

A recent article in Mortgage Professional Australia - “Car Finance: it’s time to jump on the band wagon” highlighted that the removal of flex commissions gives brokers an advantage, stating: ASIC gives brokers edge over car dealers 2017 was also a turning point for car finance, as ASIC banned flex commissions (effective this year) for car dealers, removing a major advantage for dealers providing finance. The move coincided with a major scandal in which BMW Finance was forced to refund millions of dollars in loans after it beached responsible lending provisions. Brokers, who have access to more sources of finance, now have an advantage in both pricing and prior client relationships. CAFBA‘s position is that whilst ASIC has removed flex-commissions, a major disadvantage for brokers still remains while the Point of Sale Exemption under the NCCP Act for car dealers still exists. This means that when finance is provided at the “point of sale” dealers are exempt from the responsible lending guidelines contained under the Act. Brokers providing consumer loans are of course bound by this legislation. CAFBA believes the current exemption provided to Point of Sale vendor introducers creates an unfair advantage to those who hold an Australian Credit Licence to engage in exactly the same credit activities.  It also significantly weakens the protection consumers should receive from the law when they obtain finance through these distribution channels. This is exemption was meant to be for 12 months when the NCCP Act was introduced in 2009. It is now 2018 and time for the exemption to be...

Women and Leadership Australia – Scholarship Recipients Announced

This is the third year of CAFBA’s Women in Leadership Scholarship program, and we are very pleased to announce that CAFBA has awarded fifteen (15) scholarships for female CAFBA members and their staff for programs run by the Australian School of Applied Management in 2018. This has been a tremendous response, and recognises the value and prestige of these courses. The courses are funded partly through government grants, and partly through the generous support of our Affiliate members. These courses will not only be of benefit to these very worthwhile candidates but to our industry as whole. We are delighted to advise the successful scholarship recipients for 2018 are: Accelerated Leadership Performance Program Katrina Kelly – Leaselink Business Finance Pty Ltd Chelsea Barker – Atlas Equipment Finance Pty Ltd Kristina Alexopoulos – Moody Kiddell & Partners Christine Schwugier – Magnolia Lane Financial Services Maryann Stanton – Perks Finance Pty Ltd Lucy Howard – Mainland Finance Katelyn Barnett – QPF Finance Group Alana Jepsen – TL Rentals Shannon Johnston – RLA Finance Australia Executive Ready Program Rebecca Cannon – Atlas Equipment Finance Pty Ltd Nabila Czerney – Mood Kiddell & Partners Cynthia Ong – Get Capital Wendy Boulton – Mainland Finance Alicia Bolton – QPF Finance Group Danika Szlasa – TradeMate Finance Solutions This is a great outcome and demonstrates CAFBA’s commitment to addressing the gender imbalance in our industry, and also tapping into the tremendous talent pool we already have within our member firms. As one of the recipients said last year, she “has not felt this supported in any other industry she has worked”. Congratulations to all the...

Privacy – Data Breach Reporting

Privacy Law Changes One of the Australian Privacy Principles applying as law requires personal information to be kept secure, protecting it from loss, misuse, interference and unauthorised access, modification or destruction.  From 22 February 2018, it will be mandatory to report significant privacy breaches. When the changes to the Privacy Act become law, businesses and other organisations will be required to notify individuals and the Privacy Commissioner of a data breach of personal information if the breach is likely to result in serious harm to the individuals. A breach of this nature, categorised as an ‘eligible’ or ‘notifiable’ breach, can involve the release or destruction of, or unauthorised access to, personal information in circumstances in which the affected individuals are likely to experience physical, reputational, financial, emotional or other serious harm.  This can arise in relation to one or a number of individuals, depending on the nature of the breach and its seriousness.  In assessing the impact on the individual, the ‘reasonable person’ test is used – whether a reasonable person would assess the impact as significant. A data breach could include lost or stolen computers or mobile devices, disposal, loss or theft of hard-drives or similar memory devices, hacked computer systems, hard-copy records lost or thrown out, sending personal information to the wrong person, customer details exposed online, staff taking records about individuals to another business, leased computers returned with personal information still on them, etc. The data breach regime sets out what and when actions are to be taken, including informing both the OAIC and the affected individuals.  The website of the Office of the Australian Information...

Financier of the Year Awards – The Results

CAFBA held the Financier of the Year Awards in Melbourne on 16 November, which was attended by over 150 brokers and lenders. The evening was a great success, with CAFBA President, David Gandolfo announcing the Financier of the Year is Westpac for a record fourth year. They were closely followed by Capital Finance and Metro Finance. This award is based on voting by CAFBA members for the best financier in four different categories: Documentation, Pricing, Service & Attitude These categories have remained consistent since the inception of the award in 1999. On accepting the award, Greg Pell thanked the Westpac team for their contribution and acknowledged CAFBA’s role in supporting the equipment finance industry.   Also announced on the night was the BDM of the Year award for both Victoria, South Australia and Western Australia. This has become a highly sought after award, as it shows the CAFBA members appreciation to those Lender BDM’s that provide excellent service and “go the extra mile”. The winners were: VICTORIA Winner - Craig Fraiser, Capital Finance Second - Shaun Purcell, Metro Finance Third - Frank Ikic, ANZ SOUTH AUSTRALIA Winner - Trevor Webb, St George Second - Gary Walker, Bank of Queensland Third - Steve Rump, Westpac WESTERN AUSTRALIA Winner - Kylee Heys, ANZ Second - Tony Bruns, Capital Finance Third - Wade Bunter, Westpac   Two new categories were also announced at the event - these have been developed to recognise the teams behind the scenes working to support CAFBA members and their businesses.   BEST CREDIT TEAM - Bank of Queensland BEST SETTLEMENT TEAM – Capital Finance   At the NSW End of Year Cocktails, CAFBA announced the winners...

2018 CAFBA Scholarship Program for Women in Equipment Finance

CAFBA is once again very pleased to announce its Scholarship Program for Women in Equipment Finance for 2018, and is seeking expressions of interest from members or their staff to apply for one of the fifteen (15) available scholarships. This is the third year now CAFBA has undertaken this initiative to address the gender imbalance in our industry. The recipients of these scholarships over the last two years have spoken about how beneficial the program has been, both personally and professionally. Much of the aim of these courses is to unlock potential, and we encourage you to nominate members of your staff who want to take the next step in their careers. The scholarships are arranged through Women in Leadership Australia, and the courses conducted through the Australian School of Applied Management. Five Scholarships are available to women in each of the three key management levels: Experienced senior and executive leaders are eligible to apply for an $8,000 scholarship to assist their participation in the Advanced Leadership Program. Mid-level managers are eligible to apply for a $4,000 scholarship to assist their participation in the Executive Ready Program. Early career managers are eligible to apply for a $3,000 scholarship to assist their participation in the Accelerated Leadership Performance Program. The Scholarships will cover part of the cost of the Course, however as in the past CAFBA will endeavour to find sponsors to assist with the balance of the cost. Could you please forward your expression of interest to ceo@cafba.com.au and we will be pleased to provide additional information. If you would like to speak with one of the previous scholarship recipients to gain a better understanding we will be pleased...

The benefits of having a mentor

When we started our business we were not sure what the future would hold. Our business started with 4 partners, all friends, but having never had to make decisions together it took us a while to learn how to do it. Right from the start we decided to have monthly meetings for operational discussions and quarterly meetings for strategic ones. I believe this constant discussion around the different elements of our business has been the cornerstone to it’s success to date, however, it was also responsible for slowing our growth in the first 3 years. When we started we hadn’t worked out what our respective strengths and weaknesses were as business owners. We would discuss points and go around and around in circles when trying to make decisions or do anything. Management by committee on all decisions is very hard and we recognized that this was hampering our business, so we decided to get help. Help came in the form of an experienced, considered and successful business person who had no experience in equipment finance or broking generally. The lack of industry experience was what we sought as we wanted a fresh set of eyes to help us create our own identity. We recognized we needed someone to help structure our business, teach us to make decisions, and most important of all to believe in ourselves and the direction we wanted to take. That is not to say we don’t continue to make mistakes, we do. The difference is we don’t get caught up in the fear of making a decision and getting it wrong. Having an experienced mentor...