News - Predictive Text (mortgage mix)

Adviser suspended for unlawful SMSF activity

Thu, 23 May 2013 00:00:00 -1000

The Property Investment Professionals of Australia (PIPA) has suspended one of its members, following an ASIC investigation that found the member had provided unlawful SMSF advice and failed to comply with credit laws.

Matt George, who is the sole director of the Melbourne-based property investment and finance business Money Choice, was banned last week from engaging in credit activities for eight years and providing financial services for three years.

ASIC’s investigation of George and his business found failures to comply with credit laws, responsible lending shortfalls and instances of unlicensed self-managed superannuation fund (SMSF) advice.

In particular, ASIC found that George was found to have advised some clients to set up a SMSF for the purpose of purchasing property when he was not licensed to provide such advice.

Moreover, George and Money Choice were found to have failed to have adequate arrangements in place to ensure clients were not disadvantaged by conflicts of interests arising with regards to commission payments.

PIPA chair Ben Kingsley said the association had suspended George’s Money Choice corporate membership and would be conducting its own investigation into the matter.

“PIPA will not tolerate any member who acts unlawfully and not within the best interests of their clients,” he said.
PIPA has welcomed ASIC’s decision to crack down on the SMSF space, but Money Choice’s suspension, said Kingsley, highlights ongoing issues within the fast-growing SMSF sector.

“We remain concerned with the ongoing lack of regulation surrounding property investment, including within the SMSF space,” he added.

“This sector of superannuation continues to grow exponentially and the alleged wrong-doings of Money Choice is yet another clear reminder that regulation is lacking,” Kingsley said.

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Jail time for former SMSF adviser

Thu, 23 May 2013 00:00:00 -1000

A former SMSF financial advisor has been sentenced to five years jail for fraudulent conduct that cost investors more than $1.6 million.

Bell Potter Securities advisor Glen Russell Evans of Leichhardt, NSW, pleaded guilty in the Sydney District Court to 10 counts of failing to account. Five further counts were also considered in sentencing.

The sentence carries a non-parole period of three years and nine months.

ASIC's concerns arose from Evan's role as a director of Kismet Trading Pty Ltd (deregistered), during his employment at Bell Potter Securities where he worked until his resignation in October 2008.

Between September 2002 and October 2008, he entered into contracts with self-managed superannuation funds and individuals to invest in listed Australian equities and derivatives.

ASIC's investigation found that Evans failed to invest the money as agreed, provided false trading and performance reports, failed to repay the balance of the proceeds to the investors, and in some instances used clients' money as collateral for his personal trading account without their authorisation.

ASIC Commissioner Greg Tanzer said ASIC will not hesitate to take action to "remove bad apples" from the industry.

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Advantedge enhances broker technology platform

Tue, 21 May 2013 00:00:00 -1000

Advantedge Financial Services has released the latest round of enhancements to strengthen its market leading broker technology platform, Podium 2.0.

The enhancements - now live - have been developed in direct response to broker feedback.

PLAN, Choice and FAST brokers now have access to an innovative, market leading on-line client data capture capability - eClient.

The improvements including screen layouts, enhancements to maximum borrowing calculations and streamlining to the production of credit proposal disclosure documents.

The new eClient function enables customers to capture data online at their own convenience.

That information is then integrated directly into Podium.

GM for Broker Platforms Steve Kane said the enhancements represent a significant investment for Advantedge into improving efficiencies for its brokers.

"We've listened to our broker partners and worked hard to develop Podium 2.0 into a market leading business and client management platform," he added.

"These new features reflect our continuing commitment to provide brokers with innovative business solutions that put them ahead of the market," said Kane.

Each component of the improvements has been designed to make it easier for brokers to do business day-to-day, he said.

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Aggregator makes regional BDM appointment

Mon, 20 May 2013 00:00:00 -1000

To service hard to visit outlying areas, one burgeoning aggregator has recruited a regional Business Development Manager.

LoanKit, the aggregation arm of Mortgage Choice, has recruited Philippa Feher as its first regional BDM in NSW.

She will be working with and recruiting LoanKit brokers in the North, West, and Central Coast, as well as Newcastle and Hunter regions.

Ms Feher brings more than 15 years' experience in finance and lending; having previously held positions within a range of high profile companies in the mortgage broking and broader lending industries.

While she will focus on recruiting new brokers, her key aim is to give direction to LoanKit's broker network in those rural NSW regions.

LoanKit CEO Simon Dehne said he is happy to have Ms Feher on board.

"I know she is extremely capable of providing our regional New South Wales brokers with the skills and direction needed to help them grow their businesses," he said.

"We also look forward to leveraging off of Philippa's knowledge of the local demographic, her wealth of industry experience and the existing relationships she has built over the years with local lender BDMs."

From the Hunter Valley, Ms Feher said she is thrilled to be taking on this new career challenge in her home town.

"My aim is to ensure that brokers in the regional areas of New South Wales are receiving the best possible guidance to help them reach their full potential," she said.

"I was first attracted to LoanKit because of its flexibility to allow its brokers to tailor an aggregation solution to them by way of tools and services that best suits their individual business needs."

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Two new recruits for prominent aggregator

Fri, 17 May 2013 00:00:00 -1000

To enable it to continue on its growth path, one wholesale aggregator has made two senior appointments to its business.

Wholesale aggregator nMB has recruited a Head of Sales as well as a Marketing and Communications manager.

Laurie Duffus has commenced in the Head of Sales role and Margaret Chapman has been promoted into the role of Marketing and Communications manager.

Duffus has a wealth of experience in lending and mortgage broker businesses, having worked previously with FAST, Suncorp, Westpac, Macquarie and Aussie.

He will be responsible for the growth of nMB’s broker numbers and lending volumes and for the management of the team of BDM’s.

Ms Chapman joined nMB in May 2006 as State BDM for Victoria.

In her new role she will be responsible for executing nMB’s marketing strategy and for managing internal and external communications and events.

MD Gerald Foley is pleased with the new appointments.

“Laurie brings an enormous amount of experience to his role and Margaret has the in-depth knowledge of nMB to take our marketing and communications to a whole new level.”

The new structure emphasizes nMB’s commitment to work closely with its existing broker business partners, said Foley, and also look to attract new mortgage broker businesses.

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ANZ’s rate move ‘no big deal’, says aggregator boss

Fri, 17 May 2013 00:00:00 -1000

ANZ moving its rates past that of the RBA’s cash rate cut just brings it into line with a couple of the other majors, the CEO of one of Australia's most innovative aggregators has said.

“So really it isn’t a big deal at all,” said Outsource Financial CEO Tanya Sale.

According to Ms Sale, the real big deal is that finally the lenders have passed on the full decrease.

Last week ANZ decreased its interest rates by 27bps, after the RBA had cut the cash rate by 25bps to its lowest rate in more than 50 years.

About the impact the move would have on non-bank lenders, citing Firstmac as an example Ms Sale said some have been ‘quite aggressive’ with their overall package.

“Not only are they competitive interest rate wise, but in fact are winning the race when it comes to service standards,” she added.

This, Ms Sale said, is how the whole sector should respond.

And about whether ANZ’s surprise interest rate cut puts to bed the issue of funding pressures, Ms Sale said we hear so much about the cost of funds pressures yet some of the majors have come out yet again with record profits.

So where, she asked, are the pressures coming from?

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Spread narrowing will lead to reduced funding costs: Bankwest

Fri, 17 May 2013 00:00:00 -1000

The narrowing of spreads on long-term wholesale debt may eventually put downward pressure on funding costs, according to Bankwest Retail Chief Executive Mark Reid.

"But the industry will continue to face challenges with the cost of wholesale funds," he said.

Reid said that while the absolute levels of funding costs and lending rates have fallen in recent times, the decline has been less than the reduction in the official cash rate.

His comments come in the wake of ANZ's recent move to cut its SVR to beyond that of the RBA's official interest rate cut.

About whether it throws down a challenge to its bank rivals, Reid said the recent interest rate cuts by the majors have seen their respective SVRs move into line with Bankwest's own SVR.

This, he said, signals their desire to do business in this ultra-competitive market.

"We are very proud that we have remained innovative and stayed ahead of the market with sharp pricing and great product offerings," he added.

"The innovation will continue in the next 12 months as we remain one hundred per cent committed to our broker network," said Reid.

On whether ANZ's rate surprise is likely to create heightened competition and savings for consumers, Reid agreed that both confidence and demand is on the rise.

"The recent RBA cut and increased competition should further strengthen consumer appetite and market growth," he said.

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ANZ throws down challenge to rivals - Throwing down a challenge to its major bank rivals, ANZ has dropped its variable interest rate by more than the RBA interest rate cut - a move likely to create heightened competition and savings for consumers.

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Five new recruits for prominent non-bank lender

Thu, 16 May 2013 00:00:00 -1000

To maintain and grow its relationships with brokers, one national non-bank lender has made a series of new business development appointments.

Homeloans Ltd has appointed four Business Development Managers in Queensland, New South Wales and Victoria and a Business Development Officer in Queensland.

Greg Mitchell, GM for sales said the appointments will strengthen Homeloans' national team of 13 BDMs, who are responsible for relationships with third party brokers.

"One of our key objectives is maintaining and growing our relationships with brokers, and having a strong BDM team is instrumental to achieve this," he said.

"The Australian property market is showing signs of renewed confidence this year, and as interest rates continue to be cut to bolster the economy, it's opportune to enhance our team, which ensures we can capitalise on growth."

The new recruits all have extensive experience in finance and relationship management.
BDM, Darren Stratford in QLD, was the CEO of his own mortgage broking business for many years before going on to management roles in sales and lending.

BDM, Lauren Taylor in QLD is a former BDM with Bankwest and Citibank.

BDM, Julie Adams in NSW has more than 15 years' experience working with a number of lenders dedicated to the third party channel.

BDM, Dien Le in VIC previously worked as a credit officer and in sales at Citibank.

BDO, Peter Brophy in QLD previously managed and owned a finance business.

"With our philosophy of providing solutions bedded down this year, the new team and their vast finance and solutions based experience helps reinforce our positioning statement even further," said Mitchell.

Our broker network is the eyes and ears of our customers, he said, and with these new recruits we continue to ensure they have the support they need.

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Well-known mortgage brokerage wins top franchise award

Wed, 15 May 2013 00:00:00 -1000

A winning formula of a strong franchisee team culture, peer support and information sharing has seen one of Australia’s best known mortgage franchise brands again recognised as Australia’s top franchise.

Smartline Personal Mortgage Advisers has been ranked number one by Topfranchise.com.au in its latest top 10 list released earlier this week, following a comprehensive survey of franchisees from franchise systems across the country.

Smartline has held the number one ranking since 2009.

MD Chris Acret said he was thrilled with the latest award. It reflects, he said, the unique team culture within the franchise group.

“Our focus has been on making sure that we have the forums and tools for franchisees to help each other and that the culture really encourages and recognises peer support,” he added.

“It is a bit like the spirit or ethos within a school – while the principal or teachers will play an important role and set standards and expectations, it is the students that determine the spirit or culture,” said Acret.

He said that Smartline’s focus is on making sure it offers the right environment for franchisees to be the most successful they can be.

“That culture has been retained throughout the past 14 years since our establishment and through two mergers.
I’m optimistic that it will continue to be a hallmark of the way Smartline operates in the coming years.”

10 THOUSAND FEET and topfranchise.com.au’s Head of Intelligence Ian Krawitz said one of the main areas of improvement for Smartline was a jump in satisfaction levels in relation to providing a structure for franchisees to share their own knowledge.

“There are so many online collaboration tools out there, the trick is getting buy in to their use,” he said.

Over 1000 franchisees were surveyed by 10 THOUSAND FEET across the franchise Industry.

Each franchisee is asked 35 questions in key areas, with the feedback used to benchmark performance in comparison to other franchise systems.

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Leading mortgage manager cuts variable rates

Wed, 15 May 2013 00:00:00 -1000

To keep pace with the competition, one mortgage manager has taken the knife to its interest rates following the RBA's decision to drop the cash rate to its lowest position in half a decade.

Australian First Mortgage has announced it will reduce the variable rates on all its lending products by 25 basis points.

Founding director Iain Forbes said the dates applicable to the reduction will vary with each funder.

"As a mortgage manager, AFM will continue to be competitive and offer quality products and service," he added.

AFM's move follows the same of CBA, Westpac and NAB who all reduced their mortgage rates by 0.25%, just hours after the RBA cut the cash rate to a record low of 2.75%.

ANZ waited until its Friday meeting and then threw down a challenge to its major bank rivals, by dropping its variable interest rate by more than the RBA interest rate cut - by 0.27%.

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