The Mortgage and Finance Association of Australia (MFAA) has expelled a Sydney mortgage broker for misconduct.
Accredited mortgage consultant Leon Hsieh and his business, Grand Avenue Financial Services were ousted from the peak body, the MFAA said yesterday.
The business is located in McGraths Hill in north-west Sydney.
The MFAA would not give the reason for Hsieh’s expulsion but said it has notified ASIC of the decision.
Members are expelled for serious breaches of the MFAA code of practice or constitution, MFAA chief executive Phil Naylor said.
“The MFAA has a well-defined code of practice which demands high standards of behaviour, ethics, expertise and experience,” Naylor said.
“This code is enforced by the MFAA through its disciplinary rules and tribunal and is well respected by the industry. This expulsion is part of policing those standards.”
Seven members have been expelled since 2004, while three have been suspended for three years. The association also hands out fines.
Members can be expelled if the peak body receives complaint by a consumer that leads to an investigation and a tribunal hearing.
Naylor said the MFAA needs to police the industry to reassure consumers in the absence of national regulation.
“That’s why we set up this internal regime – it puts consumers and lenders on notice,” Naylor said.
“We have strongly lobbied for the past four years for consistent, nationwide regulation of mortgage brokers and will continue to do so until a resolution is reached and legislation is passed,” he said.
Only western Australia licenses mortgage brokers. Draft legislation for the other states and territories is due to be released later this year.
