CAFBA Annual Review 2021-22

Contents 1.

President's Report

2

2.

CEO's Report

3

3.

CAFBA Board of Directors

5

4.

CAFBA Affiliate Members & Support Services Provider

7

5.

CAFBA Strategy & Implementation Plan 5.1 CAFBA Advocacy Report 5.2 CAFBA Education Council

8

6.

Commercial Finance Market Overview 6.1 Commercial Property Debt Market Update 6.2 Commercial Equipment Finance Market

16

7.

CAFBA Membership

19

8.

Women of CAFBA

20

9.

Women in Leadership Scholarship Program

21

10.

CLYP Commercial Lending Young Professionals

22

11.

Awards 11.1 Financier of the Year 11.2 Business Development Manager of the Year

23

12.

Financial Summary

30

13.

Honour Board

33

1

Annual Review 2021-2022

President's Report 2022 was a year in which we began to move towards a new normal. We have seen the best of people over the past few years, as we rose to meet unprecedented challenges, and it has made me very proud to be a part of the broker community. Our industry's current embrace of innovation and change has in many ways been inspired by these challenges, however, at the same time I see people taking comfort in a return to more normal settings.

Advocacy continues to be a core activity of CAFBA as we seek to give our members and their clients a voice. The change of government has been seamless for our advocacy work, as we have long prioritised policy, not parties. We are appreciative of the access the new government has provided David Gandolfo's team, and we have had meaningful dialogue around a number of issues including AML, the continuation of the immediate expensing of assets where orders are impacted by supply chain issues, and APS 113.

CAFBA has been working tirelessly over the last 12 months to implement our strategic plan and there has been much cause for celebration. We have adopted the Professional Standards Scheme as our pathway to continued self regulation; our Education Council launched the CLFP designation and the industry leading digital education platform PACE; the first ever data survey results were published; and our Diversity Committee released their must-read paper and have started to implement its recommendations. Added to this

We finished the year on a high with our first faceto-face Conference and Awards Night since 2019. The night was a huge success with nearly 400 people joining us to celebrate the best of our community. I would like to congratulate the finalists and the winners. The highlight of the night was awarding Ian Elkner life membership to CAFBA. He is only the 4th person to be offered this honour and his reaction was priceless. Ian is universally loved and respected. I think we saw why in his acceptance speech.

was the long-awaited return of face-to-face PD days.

While these are all terrific outcomes, CAFBA continues to look ahead. Our role is to try to understand what the future looks like for our members and their clients, and ensure that we are able to put the industry in the best position to prosper. We have a generational opportunity with the PSS to move the commercial and asset finance broking industry from being a highly regarded

Thank you again for your support in 2022. I hope you have a well deserved break over the holidays and come back refreshed and ready to make 2023 even better.

group of practitioners to being a recognised profession. Our members deserve this recognition and the clients they serve will know that the solutions they are being provided with are appropriate for their needs. The PSS is a long term

Matthew Atkin CAFBA President

project and I am excited by the possibilities it brings. The feedback from our members has been terrific across the board, but I am particularly pleased by the support from our younger members, as these changes will provide them with a fulfilling career over the long term.

2

Annual Review 2021-2022

CEO's Report After two years of COVID-related interruptions, it was a pleasure to welcome back a full slate of CAFBA events this year and once again have our members connect and network with one another.

Our Women's Forums, CLYP networking events, Appreciation Cocktails, Golf Days and Professional Development Days were all extremely well attended, and it was great to see so many of you again.

CAFBA continues to evolve, and 2022 represented a watershed in our organisation's history in which we were at the forefront of several developments that are helping shape the future of our industry.

After a slow start, CAFBA Collaborate gained wider traction throughout the year, and provided a forum for some great discussions between members.

In February of this year, the Board decided that CAFBA should pursue a Professional Standards Scheme (PSS) as the course for the Association to take in order to achieve our strategic goals of further professionalising the commercial and asset finance industry and ensuring its selfregulating framework in the long-term.

The successful launch of PACE in September 2022 was a notable achievement. The online platform features all CAFBA Education Council approved content, including all formal courses in Commercial Asset Finance, and offers members a far more efficient method of managing their CPD. PACE's innovative use of a range of formats, including video content and podcasts, will keep users informed and engaged.

A Professional Standards Scheme is a legal instrument that binds associations to monitor, enforce and improve the professional standards of their members, and to protect consumers of professional services. A PSS will set a standard of professionalism throughout the industry and send a positive message to consumers that commercial brokers are committed to upholding a level of excellence in their service.

The platform will continue to evolve over the coming months with the next step planned to be the development of a Mentoring Platform. This platform will include a mentoring programme tailored to the commercial and asset finance industry that will provide guidance for both mentee and mentor along the way.

The Annual Review deals with the Professional Standards Scheme in more detail, however, the landmark designation will distinguish commercial and asset finance brokers as a recognised profession and represents one of the most significant reforms in our industry's history.

CAFBA Collaborate and PACE are both exciting initiatives that will benefit our members and Australia's commercial finance industry as a whole. A better connected, more educated commercial finance industry will lead to better results for our customers.

As more and more of our industry continues to move online, this year we launched two innovative digital platforms: CAFBA Collaborate and our industry leading online education platform PACE, the Professional Attainment Centre of Education.

As part of CAFBA's ongoing implementation of our Strategic Plan, in July we released two significant reports: CAFBA's Broker Sentiment Report and the final version of our Diversity and Inclusion Strategy. These two reports exhibit our continuing work to promote and encourage policies t hat advance a professional, diverse, and innovative commercial finance industry, and provide our members with greater insights into all aspects of asset and commercial finance.

CAFBA Collaborate was established to facilitate greater connection between members so that brokers can share strategic advice, solve challenges and discuss the industry through providing a dedicated Resource Library and Member Directory Search.

3

Annual Review 2021-2022

government or potential government understands our policy, was further highlighted.

CAFBA's “Commercial Lending Review”, a survey of lenders, brokers and aggregators, was the first of its kind in commercial finance. We are grateful for the work of KPMG on this report, and the information gathered not only provides us with credible data to support our advocacy work when dealing with governments and regulators, but also offers our members the ability to gain a deeper understanding of the commercial finance industry at large, highlighting performance trends and industry benchmarks, in order to help them make better business decisions moving forward.

I would again like to acknowledge the work of the Board this year and their numerous and significant achievements. Led by Matt Atkin as President, who has been the driving force behind our industry's move towards professionalisation and was a worthy nominee for the Australian Broking Awards' Industry Thought Leader of the Year, and Domenic Lo Surdo as Vice President, the Board has placed CAFBA at the forefront of change in a rapidly evolving industry, ensuring our members will be prepared for the future of commercial broking. A special mention must go to CAFBA Treasurer and leader of the Women of CAFBA Sharon Piening and co-Chair of Industry Intelligence Max McFarlane for all the terrific work they accomplished this year. A special thank you to all our lender and aggregator affiliate members, whose continued support is greatly appreciated, and to the Commonwealth Bank as our Platinum Sponsor this year.

As a pilot report, only information from a select few brokers was gathered, however, subsequent reports will seek greater participation across the lender, broker and aggregator cohorts and will over time reflect the commercial lending market as a whole.

As you know, 3 years ago CAFBA committed to improving the diversity of our membership so that our profile matched that of our customers. We have been working behind the scenes to develop a well-researched perspective and strategy designed to expand diverse representation within our industry. The Board set up a specialist Diversity & Inclusion (D&I) Committee, headed by Board Member Sharon Piening. With the guidance of external D&I Consultant, Suzanne Mercier, the team explored existing barriers to diversity and inclusion, including some rather sensitive areas, to better understand what we need to do to shift the status quo. The team looked around the world to understand what was already in play and the impact that existing initiatives are having on diversity and inclusion. We now have a solid understanding of what's going on and how we will approach it.

Acknowledgement must also go to to our education partner the Institute of Strategic Management (ISM) and Gerard Hermens for all their assistance.

As an association, CAFBA has come a long way, and there is still much to be done to achieve our goals. With our very capable board and qualified membership, I am confident we are in good shape to continue in our mission of growing and supporting a diverse profession of commercial finance brokers.

David Gill CAFBA CEO

Advocacy continues to be an essential part of CAFBA's activities, and we are extremely lucky to have David Gandolfo as our Advocacy Chair.

David's expertise and passion when advocating on behalf of our industry help ensure that best customer outcomes are achieved. This year brought in a new government, and the benefit of CAFBA's practice of engaging equally with both sides of the political aisle, to make certain a

4

Annual Review 2021-2022

Patrons Chair of Education Terry Moody Moody Kiddell & Partners Asset Finance Pty Ltd NEW SOUTH WALES

Chair of Advocacy David Gandolfo Quantum Business Finance VICTORIA

Board of Directors President Matthew Atkin Atlas Equipment Finance VICTORIA

Vice President Domenic Lo Surdo Stamford Capital Australia Pty Ltd NEW SOUTH WALES

Treasurer Sharon Piening The 500 Group VICTORIA

Secretary Neil Ferguson Ledge Finance Limited WESTERN AUSTRALIA

5

Annual Review 2021-2022

Board of Directors Director Bruce Debenham Perks Finance SOUTH AUSTRALIA

Director Max McFarlane Skyward Financial NEW SOUTH WALES

Director Jane Lorimer Australiawide Finance VICTORIA Appointed 30/09/2022

Director Rebecca Mansfield Loan Market NEW SOUTH WALES Resigned 30/09/2022

Director Mike Steel RLA Finance Australia QUEENSLAND

Director George Karam BF Money NEW SOUTH WALES

Director Tina Clark Laurentide NEW SOUTH WALES

CAFBA Management Team

Chief Executive Officer David Gill

Operations Manager George Bourgoutjis 6

Membership Officer Eddie Wellins Annual Review 2021-2022

Affiliate Members & Support Services Provider Platinum Affiliate

Gold Affiliate

Gold Support Services

Valuation Services

Silver Affiliate Bizcap AU Citoplus Pty Ltd Coaxion Finance One Commercial P/L Grow Finance

Silver Support Services Hermes Capital Judo Capital P/L NFC Aggregation Nova Cash Flow Finance P/L

Bronze Affiliate Alex Bank Angle Finance Astute Financial Management P/L Banjo Loans Business Fuel College Capital Commercial Equity Group Earlypay Ebury Partners Australia P/L Capital Australia Finance New Zealand Limited Fintelligence P/L Grenke Australia iDutch

Kubio Group Pty Ltd

Bronze Support Services Iron Capital Group La Trobe Financial Services P/L Lend Capital P/L MoneyTech Finance P/L Morris Finance Ltd Multipli P/L Oak Capital Octet Finance Private Mortgages Australia Quest Finance Australia Resimac Asset Finance TruePillars Yellowgate Your Client Matters

Credit Fix Solutions O'Maras Optimum Insurance Services Institute of Strategic Management Outsource Broker Support

Affiliate Members PLATINUM Affiliate Members GOLD

16

Affiliate Members SILVER

12

Affiliate Members BRONZE Support Services GOLD Support Services SILVER Support Services BRONZE

7

7

26 1 2 5

Annual Review 2021-2022

Multiple choice assessments ensure that CPD obligations are met and that regulators and stakeholders have confidence in the quality of member education.

5. CAFBA Strategy & Implementation Plan This year, CAFBA continued to undertake our Strategy and Implementation Plan 2021-2024 with major developments made in key areas. The forming of sub-committees to oversee this work has been an important initiative and helped focus the implementation to address core issues.

PACE will have a range of modules which will enable the CAFBA Broker to access all their Professional Development needs, including: All formal courses: • Commercial and Asset Finance FNS41820 Certificate IV in Financial Services (Complex Issues in Commercial Lending);

As a reminder, the intention of the Strategy and Implementation Plan 2021-2024 is to play a central role in the commercial finance industry's ability to further professionalise through a coordinated commitment to higher education and selfregulation. Four strategic goals were identified:

• Commercial and Asset Finance FNS51820 Diploma of Financial Services (Complex Issues in Commercial Lending);

1. Education: All commercial finance brokers need to operate with a minimum standard of commercial education across the entire commercial financial sector;

• Certified Lease and Finance Professional.

Recurring CAFBA accreditation compliance courses: The platform ensures CPD programs includes 5 critical areas of development:

2. Self-Regulation: Education, not regulation, is seen as the best way to manage practice rights within the commercial broking industry;

1. Compliance such as Ethics, AML-CTF, Code of Practice and Privacy;

3. Advocacy: CAFBA uses its influential policy voice to support brokers, small and medium-sized businesses and the Australian economy;

2. Economic Environment such as Monetary Policy and Interest rate trends, business cycles and demand, credit conditions and economic growth;

4. Member Value: CAFBA articulates a compelling value proposition that attracts current and new entrants to the profession to join the association.

3. Product development and innovation such as new commercial products and application, lending policy change and credit underwriting;

1. Education

4. Legislation and Regulations such as updates on key legislation in credit and providing credit advice, AML-CTF and Privacy updates and proposed changes in credit;

In September, the CAFBA Education Council successfully launched PACE, the Professional Attainment Centre of Education, our industry leading education platform. The platform represents an important step in maintaining our industry's self-regulating framework. A fully digitised platform, PACE allows brokers and lenders in the Commercial Lending sector to access a wide range of courses and tools to support their professional development.

5. Business and Management such as leadership training, business planning, budgeting, financial statement analysis, writing the Credit Memorandum amongst many other similar focal areas.

The platform eliminates expensive tracking and recording for Aggregators and ACL holders, by digital tracking, authenticating, and managing upload and scoring certified external activities including seminar and conferences attendances and other learning programs with other providers.

With a single sign-in to log-on, PACE provides transparent and consistent CAFBA Education Council approved content. The use of video content and podcasts, along with written format, ensures that learning is engaging and enjoyable.

8

Annual Review 2021-2022

standards and practices – from effective risk management strategies and continuing professional development programs, to codes of ethics and conduct and integrity systems.

5. Self-Regulation In order to secure our industry's self-regulating framework in the long-term, CAFBA made the landmark decision to pursue a Professional Standards Scheme (PSS). In April, the Board submitted a formal Letter of Commitment to make an application under the Professional Standards Scheme. The Letter of Commitment recognises CAFBA's intention to prepare a scheme under section 7(1) of the Professional Standards Act 1994, and confirms that we have adequate resources and sufficient funding to meet the application requirements. This was the step in what will be a lengthy process, however, the benefits of the PSS for the long-term future of commercial broking justify the effort.

6. Advocacy CAFBA continued to pursue its advocacy work, using its influential policy voice to support brokers, small and medium-sized business and the Australian economy, and the strength of our policy of engaging both sides of federal politics was again further underlined with the change in government in early 2022. CAFBA made important submissions to the government on the Australian Financial Complaints Authority (AFCA) Proposed Funding Model and the proposed changes to Consumer Data Rights in Non-Bank Lending. We also made key submissions to the federal budget on the importance of retaining the Instant Asset Write-Off Extension beyond June 2023, not as an emergency relief measure but to meet the upcoming challenges of rising inflation, interest rates and wage growth.

For the purposes of regulation in Australia, one way of determining whether a group is a profession is to see if they operate under a Professional Standards Scheme. If they do, they have proved their selfregulatory capacity, and have been recognised by the combined Australian governments' Professional Standards Council.

7. Member Value

A Professional Standards Scheme is a legal instrument that binds associations to monitor, enforce and improve the professional standards of their members, and to protect consumers of professional services.

As part of our strategic goal to increase member value by developing platforms that advance a professional and innovative commercial finance industry, and providing our members with greater insights into all aspects of the industry, CAFBA embarked on three significant initiatives this year.

Any Australian professional association that meets the definitions and criteria outlined in professional standards legislation can apply for a Professional Standards Scheme. The Councils decide whether to approve such an application after considering a range of matters related to demonstrating commitment to professional standards and selfregulation.

I. Broker Sentiment Report CAFBA's inaugural Broker Sentiment Report, conducted by KPMG, sets out to provide a credible source of data for brokers, lenders and aggregators alike, that can be leveraged to better understand industry performance trends, sentiment amongst brokers and individual benchmarked performance, all with a view to help our members and affiliates in improving business decision making.

In return for these commitments, Professional Standards Schemes cap the civil liability or damages that professionals who take part in an association's scheme may be required to pay if a court upholds a claim against them. Many other industry associations, such as the CPA, operate under this model, which provides government recognition of the industry's professional standards and capability.

For many years CAFBA has recognised a lack of data in commercial finance which would assist us when dealing with government and regulators. As such, we decided to make the generation of this data a strategic priority. As a pilot report, only information from a select few brokers was gathered, however, subsequent reports will seek greater participation across the industry and will, over time, reflect the commercial lending market as a whole.

Professional Standards Schemes encourage associations and their members to implement a range of measures to improve professional

9

Annual Review 2021-2022

collaborate with fellow brokers to share strategic advice, solve challenges and discuss the industry.

Features include:

The Broker Sentiment Report includes insights into broker offerings, settlement volumes and sizes, industries serviced by brokers, broker sentiments on future settlements and cash flows, and brokers perceptions of lenders.

• Discussions - members have the ability to communicate and connect with fellow brokers/members on important topics

Key Highlights Key highlights of the report include:

• Resource Sharing - all attachments posted to discussions are archived in a dedicated Resource Library. Members can also add documents to share anything they want;

Broker Profile & Performance • 86% of the 74 brokers surveyed have less than 20 employees;

• Member Directory Search - Members can be found by name, location, company or area of interest.

• 95% of respondents offer Asset & Equipment financing, whilst less than half of broker firms offer finance for Commercial property, Working Capital and Operating & Finance Leases;

III. Diversity and Inclusion Strategy

• 37 settlements were made on average each month per firm from July to December 2022, with an average settlement amount of $8.7m;

CAFBA's Diversity and Inclusion Strategy sets a clear path for CAFBA to follow in order to advance equality, inclusion and diversity within the commercial and asset finance industry and help members leverage the resulting benefits to create more resilient businesses that can both endure and drive change.

• Top 3 industries that saw large usage of brokers over the last six months for finance, include Construction, Transportation and Manufacturing.

Broker Sentiment

Led by CAFBA Board Member Sharon Piening, the Strategy was developed with research by CAFBA's Diversity & Inclusion Committee into the barriers to and benefits of workplace diversity that went beyond existing thinking within the market. The Association commissioned Suzanne Mercier, CEO of Purpose to Profit, to examine the core problem: the barriers that are standing between the current state of play and a truly diverse and inclusive work environment.

• 65% of broker firms surveyed believe the number of settlements will increase in the next 6 months, from January to June 2022; • 80% of broker firms surveyed believe demand for Asset & Equipment and Commercial Property Finance will increase from January to June 2022.

Broker's Perceptions on Lenders • Non-major banks ranked the highest in terms of satisfaction with lending products, turnaround times and after sales support among brokers surveyed;

The Diversity & Inclusion Committee's research found overwhelming statistical evidence in support of the benefits of a diverse workforce. Diverse teams make better decisions, deliver better results, are more productive, provide better customer service and are 9 times more likely to innovate than teams which are lacking in diversity.

• Major banks ranked the highest in terms of satisfaction with lending rates amongst the brokers surveyed.

II. CAFBA Collaborate

The Strategy identifies six key areas to address, with recommended actions for the Association to take over the course of 2022 to reach targeted outcomes. These areas include:

CAFBA Collaborate is an online platform exclusively for CAFBA members to connect, engage and share insights into the asset and commercial finance industry. CAFBA Collaborate allows members to

10

Annual Review 2021-2022

1. Increasing the diversity of Australia's workforce to match the diversity within the population;

5.1 CAFBA Advocacy Report CAFBA continued to successfully pursue its advocacy work throughout a year which saw periods of lockdowns in NSW, Victoria and the ACT and a change of government, leveraging its strong relationship with both sides of the aisle of Federal Parliament, key regulators, and our membership of the Council of Small Business Organisations of Australia (COSBOA), to ensure that any new legislative changes did not inhibit the important work of commercial finance brokers, particularly when it came to the ability of the industry to self-regulate.

2. Ensuring that within diverse workplaces, organisations are getting the full benefits of that diversity.

3. Power sharing and inclusion; 4. Gender Equity, which is considered a lead indicator for creating a more diverse workforce, and is going backwards on key measures; 5. Leadership and ways to create a culture of inclusion;

In coordination with our ongoing meetings with government and regulators, CAFBA made important submissions on the Australian Financial Complaints Authority (AFCA) Proposed Funding Model and the proposed changes to Consumer Data Rights in NonBank Lending. Our key submission to this year's budget was the importance of retaining the Instant Asset Write-Off Extension beyond June 2023, not as an emergency relief measure but to meet the upcoming challenges of rising inflation, interest rates and wages growth. CAFBA pushed this argument repeatedly with the economic leadership teams within both political parties.

6. Pathways into commercial and asset finance for a more diverse group of people.

Some of the areas the Committee have chosen to explore are sensitive, however, it is CAFBA's belief that it is important for us to hear the views and frustrations of members of diverse groups in the population, and to keep them in mind as we developed our recommended strategies.

The implementation of the Diversity and Inclusion Strategy's findings will significantly improve the quality of service the commercial and asset finance industry provides to our clients. From a business perspective, it is difficult to properly understand and service a community that doesn't have a voice. It also means the insights and opportunities that come from different perspectives are invariably foregone.

Simply put, diversity makes good business sense.

An overarching goal of CAFBA is to explain the role of a commercial finance broker to government and regulators and the need to differentiate consumer and small business lending. In July of 2021, The Australian Banking Association (ABA) announced that it had commissioned an independent review of the Banking Code of Practice (BCP). The review is being undertaken by Mike Callaghan AM PSM, and I had several very fruitful discussions with Mr Callaghan. There has been discussion at a high level as to whether the Code should be prescriptive or principle based, and it is CAFBA's view that a prescriptive approach is detrimental to small business lending. An over reliance upon compliance to rigid prescriptive rules diminishes the ability to adequately assess small business lending and diminishes the ability to make decisions based on the circumstances.

Other, more detailed issues were discussed, and CAFBA will be providing the Review with a submission formally outlining our views.

David Gandolfo & Jim Chalmers in Canberra

11

Annual Review 2021-2022

In late 2021, CAFBA held a meeting with the then Federal Minister for Home Affairs, the Hon Karen Andrews MP, who had the responsibility for the Australian Transaction Reports and Analysis Centre (AUSTRAC). At the meeting, I briefed the Minister on the problems of disparity of interpretations of AML and KYC procedures between lenders, and how this ultimately can impact our ability as brokers to deliver finance to businesses. Through her department, the Minister then set up a meeting with AUSTRAC Deputy CEO, Peter Soros, with whom I had a very warm and productive online meeting.

Mr. Soros thanked CAFBA for its advocacy and insights, and agrees the AUSTRAC guidance is very principled but should be more prescriptive, and an overhaul of the entire Act is underway. The review of the Act will look at specific customer-level issues and more prescriptive, sectional (i.e. asset finance) procedures. We have suggested that AUSTRAC should issue its own clearly defined AML/CTF form, and we have received an undertaking that CAFBA will be consulted as a key stakeholder as the review of the Act progresses.

David Gandolfo and Bruce Billson

with the Hon. Matt Thistlethwaite MP, then Shadow Minister. As part of the briefing we invited some of our Affiliate Members to attend, along with CAFBA Board members, so the industry at large could hear the policies of the Labor Party. The session was very interactive, and covered a range of topics including Labor's policy on the continuation of the IAWO, how too much regulation inhibits access to finance, responsible lending obligations, tax incentives for energy efficient vehicles, cybercrime and more.

In the run up to the election, I also attended a business meeting and dinner with then opposition leader Anthony Albanese where issues surrounding commercial finance were discussed.

CAFBA continued to maintain its close relationship with The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and the important work they do advocating for the nation's small business owners, many of whom are the clients our industry serves. In January of 2022, ASBFEO held a policy forum meeting focusing on priorities for small businesses. Also in January, I held the first of our weekly meetings with the Council of Small Business Organisations Australia (COSBOA).

Summary of Australian Financial Complaints Authority (AFCA) Submission CAFBA's Position It is a condition of CAFBA membership that commercial equipment finance brokers must belong to AFCA.

At another meeting between ASBFEO and COSBOA, I outlined the six key points that we believe should be mandated by the banking industry in the event of natural disasters such as bushfires or the floods which were experienced in QLD and NSW. These points were requested by and presented to representatives of the Dept of Prime Minister & Cabinet (PM&C).

While CAFBA believes AFCA's role is important to the continuing protection of consumers and small business, it is our view that the legislation is too heavily weighted towards the complainant.

Key Points The proposed funding model addresses many of CAFBA's concerns, which were related to the fairness of the scheme not being equitable to our members.

The benefit of CAFBA's strategy to follow policy, not political parties, was underscored when Labor was voted into government earlier this year. In the lead up to the election, CAFBA organised a Policy Briefing

Much of this criticism centred on the view that the legislation in its present form is heavily weighted

12

Annual Review 2021-2022

There should be consideration of a pecuniary deterrent to the complainant where this occurs.

towards the complainant. Whilst vexatious complaints are discouraged, anecdotally there seemed to be a financial incentive available to making a complaint, as there are no associated pecuniary costs if the complaint is not upheld. The costs for any complaint are borne by the AFCA member.

We believe the proposed funding model is a positive step, and over time will be able to monitor outcomes and processes to ensure fairness is obtained to all parties.

The proposed funding model addresses many of these concerns, and we congratulate AFCA on taking these issues into account when drafting the new funding model.

Summary of Consumer Data Right Rules Amendments Submission CAFBA's Position

In the past we had many instances of member feedback that whilst the complaint has eventually been determined in favour of the AFCA member, it has nevertheless come at considerable cost to the member in time and legal advice.

CAFBA wants to ensure that professional commercial finance brokers, who operate under strict self-regulatory guidelines, are included under the legislation as a Trusted Advisor.

Whilst we appreciated there is discretion under the rules for vexatious complaints where there is no loss to the complainant, nevertheless there was still a cost borne by the member to defend the complaint and prove innocence. There is also no right of appeal, which denies natural justice to the member.

Key Points The explanatory statement to the rules changes states that 'the trusted adviser model will allow consumers to consent to an ADR disclosing their CDR data outside the CDR system with professionals that are sufficiently regulated to receive CDR data’.

Recommendations

The key to this is the concept of 'sufficiently regulated'.

We believe the introduction of five (5) free complaints will assist members to adequately manage any disputes, with mechanisms to reduce vexatious and unmeritorious complaints. It is our view CAFBA members have few complaints, so this will be a welcome introduction. Nevertheless, should a complaint be reviewed at no cost, there is still an internal opportunity cost by the AFCA member, particularly in time spent preparing the necessary defence to obtain a successful outcome.

All licensed brokers (which includes a number of CAFBA members) should qualify, given the nature of their licensing obligations: honest, efficient and fair conduct, responsible lending, no conflicts of interest to consumer disadvantage, adequate resources, compliance, insurance, AFCA membership.

Leaders Forum Luncheon

13

Annual Review 2021-2022

In 2017 QED Risk Services independently verified CAFBA's membership standards and concluded that CAFBA's requirements for membership either meet or exceed the requirements under the National Consumer Credit Protection Act 2009 and the regulatory guidance of the Australian Securities and Investments Commission (ASIC) for a person to meet the “fit and proper person” test for an Australian Credit Licence (ACL).

5.2 CAFBA Education Council It was a productive year for the CAFBA Education Council with the development of two key initiatives that will advance higher education standards throughout the commercial finance industry.

The council continued to adapt the Commercial Lease Finance Professional (CLFP) to Australian tax, accounting and regulatory codes, and launched the designation at CAFBA's Annual Conference in November 2022. The CLFP designation is the preeminent credential for equipment leasing and financing professionals throughout the world, with CLFP designees demonstrating competency through testing of knowledge, continuing education and a commitment to their business practices and dedication to the industry.

In addition to this, if a person has two years' experience with a Licensee that holds the same authorisations that the person is seeking and they (including their organisation) have compliance arrangements and systems in place that meet the requirements of AS/ISO19600-2014 (Compliance Management), then that person meets the requirements for obtaining an ACL.

The CLFP furthers CAFBA's commitment to education as a means of maintaining our industry's self-regulating framework and offers aspiring commercial brokers a clear pathway into the industry. With more brokers looking to diversify into commercial lending, CLFP ensures professional standards of conduct are maintained, and as the designation demonstrates competency in a range of subjects in commercial finance, the accreditation is internationally recognized, meaning that Australian CLFP holders will be able to work overseas to gain valuable international experience.

All commercial brokers, Australian Credit Licence (ACL) holders or not, operate under the same framework.

Therefore, for CAFBA members who are not licensed, we seek acceptance of them as a 'trusted advisor'.

Recommendations To include CAFBA commercial brokers as a Trusted Advisor. This is consistent with changes intended “to facilitate current consumer practices of sharing their data with trusted third parties in order to receive advice or a service and increase convenience and control for consumers by enabling them to use the CDR to share their data with their chosen trusted advisers. In turn, this will encourage greater participation in the CDR by accommodating existing and new use cases which rely on the ability to disclose data to third parties to be accommodated in the CDR” – as stated in the explanatory statement.

In December of 2021, the Council met to consider the adoption of a Continuing Professional Development (CPD) Compliance platform and Mentoring Platform, to progress the delivery of education content to the commercial finance industry.

The availability of the CPD Compliance platform will enhance the professionalism of the industry and provide confirmation of CPD as well as formal qualifications for those practicing in the industry.

David Gandolfo CAFBA Advocacy Chair

The Council members in attendance committed to proceed with both the CPD Compliance platform and the Mentoring Platform, and in September 2022 we launched the Professional Attainment Centre of Education (PACE), an industry leading education platform.

14

Annual Review 2021-2022

Combining video content, podcasts and written format, the PACE platform features a range of modules, including formal courses in Commercial and Asset Finance. With a single sign-in to log-on, PACE provides transparent and consistent CAFBA Education Council approved content.

Recurring CAFBA accreditation compliance courses (including):

The use of video content and podcasts, along with written format, will ensure that learning is engaging and enjoyable. Multiple choice assessments will ensure that Continuing Professional Development (CPD) obligations are met and that regulators and stakeholders have confidence in the quality of member education.

• Banking Code of Practice;

• Anti-Money Laundering and Counter Terrorism Financing; • Privacy Act;

• Ethics.

Legislation and Regulatory module with relevant general information and changes from the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority.

PACE helps users manage their CPD records by giving them the ability to record all completed CPD hours on-platform, as well as upload documents and add attendance and completion evidence of external CPD activities.

Economic Environment module includes Reserve Bank of Australia rate setting and outlook, as well as forward general economic, gross domestic product and interest rate outlook from leading economists.

The PACE dashboard will give users an immediate visual reminder of their completion percentage for each mandatory compliance requirement which is included on the platform. Each training activity that users complete will be added to their “Training Record” and will come with printable certificates of completion as well as reporting capabilities to your aggregator, approved HR/Compliance/Risk personnel manager or employer.

Product Update and Changes module includes lender updates, product guides, and Education Council member input.

Business Management module includes courses on leadership, performance management, human resources management, business planning and development as well as the all-important budgeting.

PACE will have a range of modules which will enable the CAFBA Broker to access all their Professional Development needs, including:

With the adoption of PACE, the Council will be able to efficiently deliver and monitor commercial education for the industry and provide a mentoring pathway for new entrants. The Mentoring platform will provide support and qualified mentoring for those wishing to pursue a career in commercial finance.

All formal courses: • Commercial and Asset Finance FNS41820 Certificate IV in Financial Services (Complex Issues in Commercial Lending);

Terry Moody Chair of Education Council

• Commercial and Asset Finance FNS51820 Diploma of Financial Services (Complex Issues in Commercial Lending); • Certified Lease and Finance Professional.

15

Annual Review 2021-2022

6. Commercial Finance Market Overview

Investment Assets

6.1 Commercial Property Debt Market Update

CRE asset values have commenced what looks to be a deflationary period on the back of softening yields.

Borrowing costs are now higher than actual prime yields were 12-18 months ago, which is a typical leading indicator for deflation of asset values commercial property investors look for a 1%+ spread between yield and borrowing costs to deliver sufficient equity returns. Given rates rose so quickly, we certainly haven't seen the full effect of the rising borrowing costs on asset values, as the rate rises will take time to work through the cycle. Most purchasers and vendors are waiting for rates to stabilise early next year before they make any significant buy/sell decisions.

As we move through December and look back on the year that was in Commercial Property Finance, I think the most apt word to describe the year would be “interesting”. After the prior two years of positive market conditions, characterised by low interest rates and rising property values across almost all real estate sectors, 2022 saw the emergence of headwinds to the market.

Inflation The buzz word for this year was inflation. Inflation rose by 1.8% in the September quarter to round out at 7.3% annually. According to figures from the Australian Bureau of Statistics, this was the highest annualised inflation figure since 1990. The most significant price rises were new dwelling purchases by owner-occupiers (+3.7%), gas and other household fuels (+10.9%) and Furniture (+6.6%).

Lending Covenants – Investment Loans The banks have started to put borrowers on notice regarding interest cover ratios which over the past 2 years have typically been set at 2 times interest cover (that is, the net income of the property needs to meet the interest on the loan at least 2 times). Given borrowing costs have risen 250% in the past 9 or so months, most loans would be in breach of such covenants.

We are aware of some lenders sending out breach notices primarily for ICR breaches, reserving their rights. Borrowers in this position have options, but they can be capital intensive. We certainly don't expect to see the banks act irrationally in this regard and borrowers will likely be given time to remedy any breaches. We also expect to see the banks relax ICR covenants to around 1.5 times.

Talks of rate rises from the RBA started early in the year, but it wasn't until May that Governor Lowe actually commenced what would turn out to be a monthly cycle of rate rises. We saw the year commence with a historically low cash rate of 0.10% and end the year at 3.10%. Whilst we have seen 3% increases within a 12 month span in the past, never have we seen such rises off such a low base. Then the CRE benchmark borrowing rate, the BBSY, moved almost unilaterally with the cash rate. As a result, effective borrowing costs on CRE increased 150% over a 10 month period, with prime interest rates starting the year at around 2% per annum and ending the year around 5% per annum.

Ultimately though, for borrowers who can't comply, the options will be: • Paydown existing loans such that covenants are complying; • Sell the asset (or portion thereof)/don't proceed with the acquisition; or • Refinance or seek terms from alternate / secondary lenders Of course, as revaluations, refinances and rollovers occur, valuations will need to be undertaken. If asset values trend down as we think they will, LVR breaches will overtake ICR breaches as the main issue at play here. It will be interesting to see this play out over 2023.

What did rising interest rates mean for Commercial Real Estate (CRE)

16

Annual Review 2021-2022

rises end and the “new normal” begins. On the back of a bit more certainty in that regard and underlying fundamentals like low unemployment, an under supplied housing market and low residential rental vacancy rates, the back end of next year could see a pick-up in residential construction. CRE asset values will take some time to bed down, however we do think lenders will act reasonably in assisting clients with ICR and LVR breaches. Of course, there are alternate sources of capital to assist with these issues too.

Construction Inflationary pressures were not limited only to interest rates. Construction costs continued to surge through the first 9 months of 2022. Along with rising interest rates and declining asset values, rising construction costs placed enormous pressure on many developer's feasibilities.

With the aforementioned economic headwinds, most lenders, both bank and non-bank, lowered leverage and increased conditionality and due diligence on new lending. This did leave many developers either delaying or shelving projects, or looking for other funding solutions, be they mezzanine debt or equity to make deals work. We therefore saw a slight decline in the volume of construction loans on the back of these factors.

The outlook for business investment remains positive

On a positive note, In the final quarter of 2022, our developer and builder clients reported building costs plateauing and for some materials, prices softening.

We do expect to see cost and supply issues dissipate the deeper we get into it.

Whilst AFIA's research shows commercial equipment finance has contracted over the period, the Reserve Bank of Australia's Statement on Monetary Policy (November 2022) reports that business investment remains positive.

New housing supply into major capital cities remained constrained over the course of 2022. That, coupled with low residential rental vacancy rates nationally, should augur well for residential construction once the market can get a handle on interest rates and construction costs.

Business investment was little changed in the June quarter. Growth in machinery and equipment investment remained elevated, as firms responded to strong demand (Graph 2.13).

Jeremy Wilson Head of Structuring & Transactions, Stamford Capital Australia

6.2 Commercial Equipment Finance Market

Liquidity The rise in interest rates saw government bonds, term deposits and other low yielding, risk averse investments return to favour. In the last few months, we have seen the flow-on effects of this to some of our non-bank lenders, some of whom raise capital from retail and sophisticated investors. Where liquidity was abundant over the past 2 or so years, there is a mild tightening occurring at present. It may in time lead to tightening of conditions and lowering of LVR's as it becomes more a “lender's market”. There is limited evidence to suggest this will become a deeper issue at present, however we are always monitoring the situation.

Where to for the next 12 months?

By contrast, non-residential construction investment declined as capacity constraints and adverse weather limited the pace at which work could be completed.

Survey measures of capacity utilisation and investment intentions point to a positive outlook for business investment. Non-mining capacity utilisation and

Interest rates will be a huge determining factor as to what happens next year. From owners of commercial real estate to property developers, to lenders and investors in CRE backed Mortgage Funds, we believe a lot of participants are waiting to see where the rate

17

Annual Review 2021-2022

business conditions remain elevated; capacity utilisation was around its highest level in over three decades in September. Business confidence is around its long-run average, and liaison suggests that firms are generally optimistic about the longer term outlook for demand. The ABS Capital Expenditure Survey showed that, in aggregate, firms increased their expectations for investment in the 2022/23 financial year, though this may partly reflect elevated input costs (Graph 2.14). Non-mining firms expected to increase investment in machinery and equipment, but revised their intentions for non-residential construction investment slightly lower compared with the previous survey, as capacity constraints and ongoing wet weather are expected to hamper the pace of construction work. Mining firms reduced investment intentions for the current financial year.

Liaison suggests that planned investment by the mining industry will largely be to maintain production rather than to expand capacity. Mining firms are also returning much of the earnings arising from elevated commodity prices to investors, rather than reinvesting profits.

Equipment Finance Industry Aggregates Volume ($bn) 2021/21 2021/22 General Equipment Finance $34.0 $36.6 Fleet leasing $6.4 $7.3 Total Equipment Finance $48.2 $45.6

General Equipment Finance

Receivables ($bn) 2020/21 2021/22 $80.6 $84.3

Data sourced from Australian Finance Industry Association (AFIA)

18

Annual Review 2021-2022

As of 1st July 2020, CAFBA introduced a new category of membership, Provisional members, to cater to those members who need to obtain the new educational requirement of the Diploma. Provisional members have 12 months to meet this higher educational standard, and this category continues to grow.

7. CAFBA Membership Over the 2021-2022 year, CAFBA membership grew by 10% across the Full and Associate Member categories.

While this growth is partly due to the decision to expand membership to all commercial brokers, it also reflects the view of many existing brokers that CAFBA is more aligned to their activities, and better represents the issues facing commercial finance brokers. Many new members have therefore joined from other associations or have dual membership to distinguish their activities between consumer and commercial lending.

Affiliate membership declined slightly, which was due in part to COVID and a restriction of sponsorship opportunities. The majority of these are a range of lenders, from traditional equipment financiers to cash flow financing and fintech providers, all of whom offer products that may suit the differing needs of brokers' clients.

A key strategy of CAFBA's is to provide resources and assistance to brokers who are new to the industry.

With the introduction of the Certificate IV and Diploma in Commercial Finance, over time, many of these brokers will join CAFBA with the right credentials to be professional commercial brokers.

However, CAFBA is also being supported by many nonlenders which can provide a different suite of services to brokers, including marketing companies, software providers, accountants and equipment valuers. All these organisations provide additional resources for our broker members, and CAFBA appreciates the support provided by its Affiliate Members.

19

Annual Review 2021-2022

To help women in emerging, mid-career and senior roles achieve their career goals and to encourage our association to continue to work with member organisations to raise awareness of the business benefits of gender diversity and innovation as well as to actively expand the talent pool of working women at all stages of their careers.

The forums are designed to bring women working in the commercial sector together to meet face-to-face and strengthen their relationships with each other. The events encourage women in the industry to network and support one another, and are not only open to female brokers but also encourage female support staff to attend. These events help women visualise all the career pathways available to them in the commercial and asset finance sector, and give them the support and inspiration they need to take the next step in their career journey.

The Women of CAFBA are passionate about building a strong cohort of female members and we are committed to fostering a more diverse and genderequitable finance industry by promoting diversity, increasing visibility and empowering women to find their path to success.

Each networking event focuses on promoting diversity of thought, increasing visibility and empowering women at all stages of their careers. It is this combination that drives our daily efforts and brings us closer to achieving our mission.

We are proud to have many individual brokers and a large number of organisations who support CAFBA and our initiatives to increase gender diversity within our industry through programs such as Women of CAFBA and our Women & Leadership Australia scholarships, both of which focus on exploring new ideas and promoting diversity of thought within our industry.

The Women of CAFBA has a proud history of inspiring and connecting women within the commercial and asset finance industry.

Run by a team of female brokers, many of whom are business owners, Women of CAFBA is committed to organising a wide range of quality events and educational sessions to provide support and opportunities to women working throughout all areas of commercial and asset finance.

At Women of CAFBA, we aim to address the underrepresentation of women in commercial & asset finance and alter the public's perception of what an expert in our industry looks like. We believe that by increasing the visibility of today's female finance professionals we can inspire the next generation of women to achieve these roles themselves.

At the beginning of this year, we revisited the purpose of the group and agreed to continue with our aim of connecting and inspiring members and the community. We also renewed the Women of CAFBA's mission:

20

Annual Review 2021-2022

9. Women in Leadership Scholarship Program A core strategy of CAFBA is to increase the representation of women in commercial finance.

Sharon Piening

One of the great successes of CAFBA over the past few years has been the continued support of the Women and Leadership Australia (WLA) scholarship program.

Tina Clark

For the past seven years, CAFBA have partnered with Women & Leadership Australia to address gender imbalance in the commercial and equipment finance industry by supporting more women to build their leadership capability through world-class leadership development programs.

Clare George

Lisa Shepherd

Jane Lorimer

67 scholarships have been provided so far to CAFBA women through this partnership to undertake one of Women & Leadership Australia's flagship leadership development programs, and graduates have found their experience to be enriching and beneficial, both personally and professionally.

The programs unlock leadership potential, build confidence, reflect and open up networking opportunities to learn from women across finance and other industries.

Lauren Murray

The scholarships cover part of the cost of the course, however as in the past CAFBA looks to our affiliate members to assist with the balance of the program fees, and we appreciate this generous support.

The scholarship recipients for 2022 were: Jenny Phung

Leading-Edge Program

Jessica Arabia

• Danielle Barilla – Moody Kiddell & Partners • Leesa Abrams - Moody Kiddell & Partners • Andrea Riddell - Stamford Capital Australia Pty Ltd

Danielle Barilla

21

Leesa Abrams

Andrea Riddell

Annual Review 2021-2022

same as it has always been: to connect the younger generation working in commercial finance, provide events, support with education, and create an excellent culture in the industry.

Executive Ready Program • Samantha Hopper - FD Finance • Emily-Jane Forbes - Podium Equipment Finance

This year we also partnered with great lenders such as Metro (who also won Financier of the Year at the CAFBA awards), to put on CLYP networking events in Sydney, Melbourne, and Brisbane. Seeing the up-andcoming brokers get together reinforces why it is so important to build connections in the industry as it continues to evolve.

Advanced Leadership Program • Denise Jackson - A Class Business Finance

10. CLYP Commercial Lending Young Professionals In 2022 the CLYP team held a strategy workshop to reset our mission, vision, and values. We are proud of what we developed and believe these will be guiding principles to help CLYP continue to grow next year and into the future. You can see our refined mission, vision, and values below. In essence our purpose remains the

The “young” people you meet today at a CLYP event might end up the “old and wise” leaders in our industry in the future. It is important to build your network before you need it and contribute to the amazing industry we are all a part of.

22

Annual Review 2021-2022

Our industry is experiencing a period of rapid change, and it is encouraging to see so many of our members managing to provide a level of excellence in their service while evolving to this changing landscape.

11. Awards CAFBA held our Annual Conference and Awards Night in November, and after the events of the past two years, it was a pleasure to once again enjoy each other's company in person. The Awards Gala was a night of great fun and offered a relaxed environment for the industry to come back together. With over 400 people attending the Awards dinner, the night's theme of “Back Together Again” was particularly relevant.

This year's conference offered a range of informative content and thought-provoking ideas, with a number of panels and speakers from industry leading figures.

The highlight of the conference was the launch of the CLFP, with the CEO of the United States based CLFP Foundation Reid Raykovich in attendance. The CLFP furthers CAFBA's commitment to education as a means of maintaining our industry's self-regulating framework and represents the pinnacle of a commercial broker's education, while offering aspiring commercial brokers a clear pathway into the industry.

Congratulations to all the award winners. The Broker Awards called for nominations based on criteria that aligned with CAFBA values and strategic direction.

This included addressing the gender imbalance in our industry, diversity and education and training, whilst also adhering to CAFBA's professional standards.

Thank you to all our speakers and panelists who made the 2022 Annual Conference such a success. Particular acknowledgement to CBA, our Platinum sponsor and to Gold sponsors ANZ, BOQ Finance, Flexicommercial, the PCF Group and Westpac.

For the Financier Awards CAFBA surveys members annually to ascertain the CAFBA Financier of the Year.

All the major Australian financiers are Affiliate Members of CAFBA, who provide an important service to the broker community. CAFBA recognises this contribution and works closely with the financiers for the benefit of the commercial and equipment finance industry.

Broker of the Year

First

The Financier of the Year award is keenly sought by the commercial finance lenders. The voting categories of these awards have remained the same since their inception, and this year, for the first time in many years, a non-bank lender took out the award.

Congratulations to Metro Finance, who are demonstrating a changing dynamic in the commercial lending space.

Joel Quartermaine Pacific Finance Aust

Second Andrew Kelly

Anasta Finance Consulting Pty Ltd

Third

Access Capital Pty Ltd

Jake Girke

Emerging Broker of the Year

First

Chris Garner

QPF Finance Group

Second William Hamer

Hamer Finance

Third

Moody Kiddell & Partners

Jackson Atto

Emerging Broker Firm of the Year

First

At the Awards night CAFBA also pays recognition to those that have made a significant contribution to the industry. This year we were pleased to make four awards in these categories for excellent service.

Talk to a Broker

Second Loan Options.ai Third

Podium Equipment Finance

Broker Firm of the Year (more than 5 business Writers)

Service to the Industry Award

First

• Mike Felton – formerly CEO of the MFAA

QPF Finance Group

Second Magnolia Lane Financial Services

• Peter Strong – formerly CEO of COSBOA

Third

Moody Kiddell & Partners

Contribution to CAFBA Award Broker Firm of the Year (less than 5 business Writers)

• Graeme Latta – formerly CAFBA Director

First

Talk to a Broker

CAFBA Life Member

Second

Halcyon Finance Pty Ltd

Third

Capital Plus Finance

• Ian Elkner – formerly CAFBA Director and Treasurer

23

Annual Review 2021-2022

FinTech of the Year

Women in Finance Excellence Award

First

Caroline Grima Consolidated Operations Group

Second Milena Franjic

QPF Finance Group

Third

Australiawide Finance

Jane Lorimer

Kellie Crocker

RLA Finance

Second Donelle Brooks

Early Pay

Third

A Class Business Finance

Denise Jackson

Westpac Equipment Finance

Third

FlexiCommercial

Third

Angle Finance

NSW First

Patrick Netrayana FlexiCommercial

Second

Mark Hoban

Metro Finance Pty Ltd

Third

George Steele

Grow Finance

QLD First

Mykolas Kaliacius FlexiCommercial

Second

Tony Nicol

Metro Finance Pty Ltd

Third

Darryl Jenkin

FlexiCommercial

First

Chris Vogias

Capital Finance

Second

Craig Fraser

Metro Finance

Third

Narelle Bruni

Pepper Money

VIC

Financier of the Year

Second

Grow Finance

CAFBA also awards a Business Development Manager (BDM) of the Year in each State, to acknowledge the work and service that the BDM's of the Lenders provide to the commercial brokers. Over time we believe this award will become just as prestigious and as keenly sought as the Financier of the Year.

CAFBA surveys members annually to ascertain the CAFBA Financier of the Year. All the major Australian financiers are Affiliate Members of CAFBA, who provide an important service to the broker community.

CAFBA recognises this contribution and works closely with the financiers for the benefit of the commercial and equipment finance industry.

The Financier of the Year award is keenly sought by the commercial finance lenders. The voting categories of these awards have remained the same since their inception. The categories to vote on the Financier of the Year are: • Service • Attitude • Documentation • Pricing Metro Finance

Second

11.2 Business Development Manager of the Year

11.1 Financier of the Year

First

Shift

CAFBA would like to congratulate not only the recipients, but all our Affiliate Members for their contribution.

Women in Leadership Award

First

First

SA

Settlement Team of the Year

First

Metro Finance

First

Gary Walker

BOQ

Second

Westpac Equipment Finance

Second

Hayden Lever

Capital Finance

Third

FlexiCommercial

Third

Mark Kerin

CBA

WA Credit Team of the Year

First

Tony Salvia

CBA

First

Metro Finance

Second

Damian Hatchley

NAB

Second

Bank of Queensland

Third

Jenny Whelan

Westpac

Third

FlexiCommercial

First

David Johns

Westpac

Second

Lisa Cashin

CBA

TAS

Aggregator of the Year

First

COG Aggregation

Second

Connective

Third

College Capital

24

Annual Review 2021-2022

Awards

Aggregator of the Year Winner COG Aggregation presented

by Domenic Lo Surdo to Mark Rayson

Emerging Broker Firm of the Year & Broker Firm of the Year (less than 5 Business Writers) Winner Talk to a Broker presented to Director William Hong by Neil Ferguson

Broker Firm of the Year (more than 5 Business Writers) Winner QPF presented by Terry Moody to Matt Crain

Fintech of the Year Winner Shift

Women in Excellence Award Winner Caroline Grima presented by Sharon Piening

Women in Leadership Award Winner Kellie Crocker presented by Melissa Rutherford of WLA

Broker of the Year Award Winner Joel Quartermaine presented by David Gandolfo

Emerging Broker of the Year Winner Chris Garner presented by George Karam

BDM's of the Year Winners Chris Vogias (VIC), Tony Salvia (WA), David Johns (TAS), Patrick Netrayan (NSW), Mykolas Kaliacius (QLD)

Financer, Settlement & Credit Team Of the Year Winners Metro Finance

25

Annual Review 2021-2022

26

Annual Review 2021-2022

27

Annual Review 2021-2022

VIC Golf Day

28

Annual Review 2021-2022

NSW Golf Day

29

Annual Review 2021-2022

Financial Summary Statement of Profit or Loss and Other Comprehensive Income for the Financial Year ended 30th June 2022 2022 $

2021 $

952,838

1,059,960

(33,888)

(70,980)

(25,003)

(19,355)

-

(6,200)

(193,896)

(93,069)

(21,289)

(37,177)

(363,214)

(288,216)

-

(27,784)

(93,109)

(47,379)

(68,570)

(75,790)

-

(48,810)

(156,076)

(49,366)

(161,854)

(77,067)

(38,400)

-

(64,870)

(51,656)

(1,220,169)

(877,896)

(267,331)

182,064

11,109

(26,236)

Surplus for the year

(256,222)

155,828

Operating Profit/(Loss) after Income Tax

(256,222)

155,828

155,828

155,828

NOTE

Revenue from Ordinary Activities

2

Award and Conference Expenses Consultancy Fees Donations Event Expenses Professional Development Professional Fees Project Expenses Promotion Expenses Scholarships & Education Education Council Funding Employee Benefits Expense Administration Expenses Community Advisory Services Travel & Accommodation Total Expenditure Surplus before Income Tax Income Tax benefit (expense)

Total Comprehensive Income

30

Annual Review 2021-2022

Financial Summary Statement of Changes in Equity for the Financial Year ended 30th June 2022 Retained Surplus $

Total $

Balance at 1 July 2020 Surplus/(Deficit) for the year

350,852

350,852

155,828

155,828

Balance at 30 June 2021

506,680

506,680

Balance at 1 July 2022 Surplus/(Deficit) for the year

506,680

506,680

(256,222)

(256,222)

Balance at 30 June 2022

250,458

250,458

31

Annual Review 2021-2022

Financial Summary Statement of Cash Flows for the Financial Year ended 30th June 2022 2022 $

2021 $

882,892

1,158,401

147

305

(38,647)

(18,203)

(1,137,151)

(880,660)

Net cash provided by/(used in) operating activities

(292,759)

259,843

Net increase/(decrease) in cash held

(292,759)

259,843

Cash and cash equivalents at the beginning of the year

976,034

716,191

Cash at end of Financial Year

683,275

976,034

NOTE

Cash Flows from Operating Activities Receipts from Members and Others Interest Received Income Tax Paid Payments to Suppliers and employees

32

Annual Review 2021-2022

CAFBA Honour Board PAST PRESIDENTS

Contribution to CAFBA Award

2008/09

David Gandolfo

2014

Glenda Boschert

2009/10

David Gandolfo

2018

Daryl Raggatt

2010/11

Mark Rayson

2019

Mark Caddy

2011/12

Mark Rayson

2019

Greg Moylan

2012/13

Terry Moody

2013/14

Terry Moody

2022

Graeme Latta

2014/15

Terry Moody

CAFBA Financier of the Year AAFA/CAFBA Award Winners

2015/16

David Gandolfo

1999

CBFC

2016/17

David Gandolfo

2000

CBFC

2017/18

David Gandolfo

2018/19

David Gandolfo

2001

Suncorp Metway

2019/20

David Gandolfo

2002

Westpac Equipment Finance

2020/21

Matthew Atkin

2003

Westpac Equipment Finance

2004

Macquarie Leasing

2005

Capital Finance Australia

2006

BOQ Equipment Finance

2007

BOQ Equipment Finance

2008

Westpac Equipment Finance

2009

BOQ Equipment Finance

2010

Macquarie Leasing

2011

Macquarie Leasing

2012

Capital Finance Australia

2013

Macquarie Leasing

2014

Westpac Equipment Finance

LIFE MEMBERS 2013

Terry Moody

2013

David Gandolfo

2013

Kathryn Bordonaro

2022

Ian Elkner

SERVICE TO THE INDUSTRY AWARD 2014

Geoff Wallace

2016

Joe Terlato

2017

Ron Hardaker

2017

John Bills

2019

Barry Clarke

2020

Phil Botsis

2015

Westpac Equipment Finance

2022

Peter Strong

2016

Westpac Equipment Finance

2022

Michael Felton

2017

Westpac Equipment Finance

2018

Capital Finance

2019

Westpac Equipment Finance

2020

Westpac Equipment Finance

2021

Westpac Equipment Finance

2022

Metro Finance

Service to the Industry Award Mike Felton

Service to the Industry Award Peter Strong

33

Annual Review 2021-2022

Commercial & Asset Finance Brokers Association of Australia

CONTACT DETAILS Registered Office: Level 3, 33-35 Atchison Street, St Leonards NSW 2065 Mail Address: PO Box 576 Crows Nest NSW 1585 Legal Counsel: Steve Edwards - CreditWise Pty Ltd ABN 55 097 768 799 14 Haigh Place Castle Hill NSW Australia 2154 Telephone: 02 9885 7097 Follow us on Twitter @CAFBA1

Join us on