Support for industry newcomers enhanced
The Mortgage and Finance Association of Australia has released new standards aimed at raising the bar on how mentoring is provided to people entering the mortgage and finance industry.
An integral practice in the industry since the early 2000s, mentoring is implemented across a range of professions.
Developed by the MFAA following significant consultation with industry stakeholders and benchmarked against comparable associations and professions, the standards replace current mentoring guidelines for MFAA accredited mentors.
They will apply to all new mentoring relationships between MFAA endorsed mentors and new brokers from July 1, 2023, the peak industry body has confirmed.
MFAA CEO Anja Pannek (pictured above left) said that mentoring enables incoming talent to receive quality, hands-on coaching that they require to be effective and to service customers.
Lifting the bar on mentoring provides an opportunity for the mortgage and finance industry to nurture new brokers to support their success, and to support the long-term sustainability of the industry, she said.
“Our new mentoring standards have been developed to provide a mentoring framework which aligns with current industry best practice and expectations,” Pannek said. “They also reflect the skills and experience mentors should have and provide a solid foundation for brokers wanting to become mentors to build their programs from.”
Pannek said that the new standards would provide mentees with a clear outline of the level of support and guidance they should expect from the process.
The mentoring process is a “cornerstone” of the pathway for brokers who are new to the profession, she said.
MFAA head of education Dan Walsh (pictured above right), said the mentoring standards were developed to give new brokers a better foundation in the early period of their broking career.
Prepared in a structured format, the standards prepare new brokers for the various client situations they can expect to encounter, he said. They set out the body of work that mentees are required to complete 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,” Walsh said.
Existing MFAA accredited mentors and new mentors could now apply to be endorsed by the MFAA under the new standards, and mentoring programs can also be endorsed, he said.
Endorsed mentors and mentoring programs would be listed on the MFAA website.
“The process of endorsement for mentors and mentoring programs has been designed to increase the trust of stakeholders including our new to industry brokers seeking mentoring,” Walsh said.
“While all new mentoring agreements entered into from 1 July 2023 will be required to meet the new standards, endorsed mentors can begin providing mentoring to new brokers according to the new standards immediately, if both parties agree.”
Supporting new entrants is an ongoing focus for the industry, with the MFAA Industry Intelligence Service 15th edition report showing broker numbers have exceeded 19,000 for the first time.
Walsh confirmed that brokers currently involved in mentoring are able to complete their mentoring under the current guidelines.
Mentors who have received ‘approved mentor’ status to mentor an individual broker (usually within their own business) from an MFAA representative or aggregation group will retain this status but are not eligible to use the status in any marketing activity, he said.
“We will continue to undertake ongoing reviews and updates to our mentoring standards to reflect changes and developments in the industry, professional practice, and the regulatory environment,” Walsh said.
