Back to contentsCode of Practice & Disputes Resolution Service
Defined Words
Aggregator
A Finance Broker that channels loan applications to Credit Providers with whom they have limited agency arrangements on behalf of other Finance Brokers that do not have such arrangements. The Aggregator will receive any upfront and/or trailing commission from the Credit Provider and disburse it to the other broker in accordance with a prior written arrangement.
Alternative Dispute Resolution Scheme ("ADRS")
Means an ASIC registered scheme for investigating and hearing complaints regarding the activities of Finance Brokers, where the Finance Broker is either a member of such a scheme or an agent of a member of such a scheme and may include the Banking and Financial Services Ombudsman (BFSO), the Financial Industry Complaints Service (FICS) or any other ASIC registered scheme capable of hearing disputes involving Credit Facilities or Finance Brokers.
Client
Means a person or other legal entity that engages the services of a Finance Broker for the purpose of obtaining a loan or Credit Facility and includes any prospective borrower, lessee, hirer or guarantor that is a party to a transaction or the direct or indirect beneficiary of any information, advice or service provided by the Finance Broker, for financial or other reward. It is deemed that a Client will have a principal and agency arrangement with the Finance Broker appropriate to the circumstances of each appointment.
Committee Member
A member of any Finance Brokers Association of Australia Limited (FBAA) committee.
Consumer Representative
A person who is capable of reflecting the viewpoints and concerns of consumers and be people in whom consumers and consumers groups can have confidence.
Credit Facility
Includes the types of facilities described under the definition of Finance Broking.
Credit Provider
For the purposes of this Code a Credit Provider includes:-
- Bank licensed under the Banking Act 1959
- Credit union
- Building society
- Finance company
- Mortgage manager
- Merchant bank
- Foreign bank
- Trustee company
- Pastoral company
- Contributory mortgage scheme
- Private lender
- Superannuation fund who has or may receive a submission for finance broking services from the relevant Finance Broker.
Finance Broker
For the purposes of this Code a Finance Broker is defined as being a person, corporation or partnership, that, as an agent, in the course of business negotiates or arranges loans of money or other credit facilities on behalf of Clients and is paid for that service either by the Client or a Credit Provider or both, including the act of originating and/or managing such loans or Credit Facilities on behalf of Credit Providers.
Finance Broking
For the purposes of this Code Finance Broking includes negotiating or arranging the following types of loans or credit facilities:-
- Residential mortgages
- Secured and unsecured consumer finance including credit cards
- Commercial mortgages
- Secured and unsecured business finance
- Lease finance, commercial hire purchase and chattel mortgages
- Mortgage origination and/or management on behalf of Credit Providers
- Debtor factoring and cash flow finance
- Debt reduction plans
Legal Practitioner
An Australian Legal Practitioner is a lawyer who holds a current local practicing certificate or a current interstate practicing certificate.
Mediation Officer ("MO")
Means a person appointed by the DRS to investigate complaints, gather information and make written reports and recommendations to the DRS and Referee.
National Executive Committee
The body responsible for the governance of the Finance Brokers Association of Australia Limited.
Office Bearer
A person elected to serve on any of the structures of the Finance Brokers Association of Australia Limited.
Referee
Means an independent person appointed by the FBAA DRS to receive reports from the MO, conduct hearings and make determinations on complaints.
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