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Mortgage manager promises to pay brokers’ ACL fee
Glen Jones
Nationwide Lending, an Adelaidebased mortgage manager, has pledged to reimburse its accredited brokers the annual licensing fee owed to ASIC to
obtain an Australian Credit Licence (ACL). There is, however, just one catch. Brokers need to be actively sending loans to Nationwide Lending and meet a minimum benchmark of two loans per month in order to receive the reimbursement. Chief executive officer Glen Jones said the company valued its quality accredited brokers, and was more than happy to assist them with the upcoming ACL fee. “It’s just smart business to look after our accredited brokers who support Nationwide Lending and settle a minimum of two loans per month,” he said.
Exactly how many of the approximately 250 accredited brokers that Nationwide has on its books would qualify for the deal is uncertain. However, the company’s strategic business manager, Craig Pickering recommended that brokers hold their own individual ACL, rather than becoming a credit representative under an aggregator or group licence. “If they do not obtain their ACL now, brokers will have very little control over their futures and will be in no position to negotiate future terms or commissions,” he said. Registration to apply for an ACL opened at the start of April with all brokers who are looking
to obtain a licence compelled to register as the first step under the National Consumer Credit Protection Act. ASIC, who will be running the licensing scheme, advises that brokers ought to register by 18 June to ensure their application is processed by the time regulation kicks in on 1 July. From that time onwards, only registered credit participants can engage in credit activities. Advantedge, which is offering its brokers the ability to become credit representatives, recommends that all brokers register for the licence even if they will eventually operate under their aggregator’s ACL. After registering for a licence, brokers will have six months in order to obtain a licence or become Authorised Credit Representatives under their aggregator to continue practising in 2011.
Firstfolio agrees to acquire LeaseChoice for $2.4m Acquisitive ASX-listed mortgage and financial services group, Firstfolio has agreed to purchase selected key assets of Sydney-based LeaseChoice – a leading specialist in business equipment finance and leasing solutions – for $2.4m. The deal will immediately diversify Firstfolio’s earnings and adds LeaseChoice to its recent string of acquisitions which include Xplore Capital, Loan Services Australia and First Chartered Capital. In its latest deal, Firstfolio will acquire the LeaseChoice business name, website, origination systems and associated trademarks. Firstfolio will also have access to wholesale funding arrangements
previously arranged by LeaseChoice. The acquisition is expected to be earnings accretive in the first 12 months, contributing up to $750,000 to Firstfolio’s group EBITDA in that period. Initial income will come from fees received on new transactions. The LeaseChoice deal will enable Firstfolio to rapidly deploy a new suite of financial products with strong reach into SME and corporate markets through its existing distribution network, centred on the eastern seaboard. “Diversification of product and client portfolio has been a major goal for Firstfolio, and we have always been opportunistic in adding new
financial service components that could benefit from our existing distribution platform,” Firstfolio chief executive officer Mark Forsyth said. He added that the company had also put a priority on expanding into adjacent segments, particularly the SME market. “As a leading provider of asset finance to sole traders, successful SMEs and larger companies, LeaseChoice fits this bill perfectly,” Forsyth said. The LeaseChoice’s origination team will join Firstfolio, and LeaseChoice founder Kirk Tsihlis will focus on introducing or enhancing existing wholesale funding arrangements on an exclusive basis in Australia.
Mark Forsyth