Reputation hinges on effective self regulation, says former government whip
![CAFBA boss David Bushby stands on soapbox for brokers](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/075/0357_638737728869749466.png)
The Commercial & Asset Finance Brokers Association of Australia (CAFBA) holds the reputation of its members in its hands, a mandate that chief executive David Bushby (pictured) doesn’t shy away from.
Bushby (pictured) was hired to spearhead CAFBA in 2023 and in his own words is “happy to stand on the soapbox” for the association’s members.
As a broker-only association, CAFBA brings Australia’s diverse, sprawling network of commercial finance dealmakers in one place to advocate for the sector and push for policy changes.
It has had no shortage of wins in the past.
Before Bushby’s time, CAFBA helped to reverse the former Kevin Rudd former Labor government’s policy of capturing business lending under National Consumer Credit Protection (NCCP) rules.
CAFBA rightly argued that the law, which primarily exists to protect homeowners, unfairly hindered small businesses’ ability to grow.
Now, speaking with MPA, it is clear that Bushby and CAFBA see a critical importance in effective self regulation in a sector where reputation is the key to survival.
“It is the whole reason why we exist,” he said.
Different strokes
Commercial broking is a comparatively underregulated industry compared to household mortgage broking. While this is by design, it also presents some major challenges for the industry’s stakeholders.
It is a broad generalisation, but “consumers can make decisions based on emotion, whereas businesses tend to make decisions based around more rational opportunities and business plans”, Bushby told MPA.
This calls for different regulatory overheads and less state interference, although there is a fine line to walk.
“CAFBA recognises that to be successful in that argument, we actually have to be effectively self regulated… our brokers need to be professional and knowledgeable and capable and ethical,” Bushby said.
CAFBA is not just talking the talk – with its long-term goal of being admitted under the Professional Standard Scheme (PSS) framework, it is also walking the walk.
Governed by the Professional Standards Act, PSS frameworks are, in the government’s words, “legal instruments that bind associations to monitor, enforce and improve the professional standards of their members, and protect consumers of professional services”.
Instilling confidence
PSS certification will give “confidence to the lenders that when they’re dealing with our brokers that they’re dealing with people that know what they’re doing, but even more importantly, it gives confidence to our brokers’ clients that… these people are properly regulated,” Bushby said.
For CAFBA members, failure to adhere to PSS rules could result in them being booted out, causing significant reputational harm. Given that some major lenders require CAFBA membership for asset finance, there is no lack of potential financial harm either. Such are the wonders of effective self regulation.
“It’s not an easy thing to get into,” said Bushby. CAFBA has already been working on the process for nearly two years, but it could be another two years before finally clinching the deal.
Until then, ”we’ll continue to maintain our relationship with regulators and decision makers so that they understand that commercial lending is different”.
Advocating for change
It is no secret why Bushby was chosen to lead CAFBA through this time of change. As the former chief whip under the Abbott, Turnbull and Morrison governments, he knows a thing or two about the fine art of diplomacy.
Bringing that energy to the role is a sure-fire way to get things done.
“There's an old saying in politics – ‘you can't fatten the pig on market day,’” he said. In other words, it’s the years of hard graft and reputation building that go into effective campaigning, not last-minute tricks and gimmicks.
Whether our politicians genuinely adhere to that axiom is for the individual to decide. As for Bushby, his focus remains getting the PSS application over the line.
“We can't just rest on our laurels… we're continually looking for better new ways in which to professionalise the industry and make sure our brokers are working in the most professional way that they possibly can.”