The MFAA Mentoring Standards
What process did the MFAA follow in developing the MFAA Mentoring Standards?
We undertook a comprehensive review of industry mentoring. The review incorporated the following stages:
- interviews, consultations and focus groups with key stakeholders including lenders, aggregators, practising mentors, recent mentees
- research and benchmarking with similar associations internationally and domestically with comparable professions in financial industries
- drafting quality standards and developing supporting documents and guidelines.
Who do the new Standards apply to?
The MFAA Mentoring Standards came into effect on 1 July 2023 and apply to all new mentorships which commence on or after that date.
What is the difference between an approved mentor and an Endorsed mentor?
An approved mentor has been approved by a representative of the MFAA or an aggregator to mentor an individual mentee. Approved mentors may not have been assessed as an MFAA Endorsed Mentor but will need to meet the criteria listed in the MFAA Mentoring Standards.
An Endorsed Mentor has submitted an application form with supporting documents to the MFAA. This application has been approved by the MFAA and the mentor is eligible to be listed on MFAA’s website as an Endorsed Mentor. Each Endorsed Mentor receives a logo from the MFAA which they may display and use for marketing purposes.
Becoming an endorsed mentor
I want to be an MFAA Endorsed Mentor. What should I do?
To become an MFAA Endorsed Mentor you will need download and read the MFAA Mentoring Standards.
Then complete and submit the MFAA Endorsed Mentor application form with the appropriate supporting documentation.
Do I need to apply for MFAA Endorsem*nt if I am an ‘Approved Mentor’ with my aggregator?
No, endorsem*nt is not compulsory.
If you are currently an approved mentor with aggregation groups, this status will be maintained so long as the aggregator’s program is endorsed.
Is there a cost for the application process?
No, this is a free service to our valued members.
What about my current mentees? Do I need to follow the new standards?
If you have existing mentees, continue to mentor them.
The Standards will not be applied retrospectively. The Standards commence on 1 July 2023 for all new mentoring relationships.
Can I apply the new standards to my existing mentees?
Yes, you may.
What if the mentee is an MFAA member but the mentor is not an MFAA member?
The mentor will need to join the MFAA and meet MFAA’s membership requirements.
Where can I get further information and help?
We have created a MFAA Mentoring Handbook which provides further explanations and examples to support you.
You can download the Handbook from the MFAA Learning Hub under the Mentoring learning domain.
I am enrolled in the ISM course. Should I continue?
Yes, you may complete the ISM Mentoring Program and you will receive the certificate of completion.
You may then apply to be an MFAA Endorsed Mentor. Your certificate will be accepted as part of your application. You still need to meet the criteria listed in the MFAA Mentoring Standards.
Being mentored
Who needs to be mentored, and for how long?
New-to-industry brokers who have less than two years of experience in mortgage and finance broking are required to engage a mentor to support them as they develop relevant experience.
Current industry practice of mentoring programs generally aligns to a two-year duration and new-to-industry brokers need to confirm the duration with their aggregators.
The MFAA Mentoring Standards set out, amongst other things, the body of work that mentees are required to complete during their mentorship under the guidance of their mentor. On average, this will take a new-to-industry broker working full-time up to two years to successfully complete.
It is worth noting that the regulator, ASIC, in Regulatory Guide 206, specifies that brokers who wish to apply for an ACL need to demonstrate two years of ‘relevant experience’ without ‘significant non-compliance issues’ when demonstrating ‘competence’ as a mortgage and finance broker (RG206.60).
I have a complaint about my mentor. Who should I contact?
The first step is to refer to the grievance (complaints) procedure that your mentor provided you when you commenced your mentorship. The procedure guides you on the steps you should take.
If your mentor did not provide a grievance procedure, we recommend that you firstly try to resolve the issue directly with your mentor. If you unable to do this, or if you have already attempted this, we recommend that you contact the consumer protection agency in your state.
You can find out more information on the Australian Competition and Consumer Commission (ACCC) website.
What about if a mentee completes the body of work set out by the mentor within two years?
The member is not eligible for Accredited Finance Broker category until they have completed two years of relevant experience.
