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Est. 1961

Essential reading for those involved withCollections, Investigations, Process Serving and Repossessions in Australia

June/July 2018 | Volume 51 Issue 3

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CONTENTS

AGENTJune/July 2018 | Volume 51 Issue 3

8

15

19No part of this journal may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system without the prior written permission of the publisher. The views contained in articles by contributing authors are not necessarily those of the publisher, editor or directors of the Institute of Mercantile Agents Limited. Articles and content may have been edited, but remain the copyright of the author. It should be noted that articles are of a general nature and are not a substitute for appropriate professional advice. Although all reasonable attempts have been made as to accuracy of submitted advertisements and their bona fides, no warranty is given to any party. The right is reserved to accept or reject any articles or advertisements.

ON THE COVER

2018 Pickles IMA National Conference 15

MEDIA & NEWS 4

BANKING & FINANCE Terms of reference 10 Behaving badly? 11 Barry Urquhart’s learnings from the Royal Commission 13

FOCUS Vale: David Sidney Cains 8

FORUM It’s all about trust 19

MEMBER INFO 2018 Pickles IMA National Conference 15

INSTITUTE From the President: Basil Faulkner 22 From the CEO: Alan Harries 23

AGENTJune/July 2018 Volume 51 Issue 3AGENT is the official bi-monthly journal of the Institute of Mercantile Agents Ltd.17B Denney St Broadmeadow, NSW [email protected]: 94 000 514 483ISSN: 1443-3443 ISSN: 2208-3189 (Online)Editorial DirectorAlan Harries Phone (02) 4927 0477 Fax (02) 4927 [email protected]

Editor Contributions, articles, letters and comments from readers should be directed to:Institute of Mercantile Agents17B Denney StreetBroadmeadow, NSW 2292Phone (02) 4927 0477 Fax (02) 4927 [email protected] material deadline is the 1st of the month preceding publication.Design and ProductionAbigail ThompsonPhone (02) 4927 [email protected]

General, Membership andService Directory EnquiriesInstitute of Mercantile Agents Ltd.Office hours: 8.30am-5.00pm [email protected] (02) 4927 0477 Fax (02) 4927 0677PO Box 233, Waratah NSW 2298Advertising EnquiriesPhone (02) 4927 0477 Fax (02) 4927 [email protected]

| AGENT | Jun/Jul 2018 | www.imal.com.au4

MEDIA & NEWS

The Federal Attorney-General’s Department is currently leading a review into hardship arrangements and how

they interact with the consumer credit reporting framework. The review is a response to concerns raised by industry and consumer-advocacy groups around how hardship arrangements are treated, and will make recommendations on whether any reforms are required.

Examining the interaction between financial hardship information and the consumer credit reporting system will involve policy considerations by both the Attorney-General’s Department, due to its administration of the consumer credit reporting system contained in the Privacy Act 1988 (the Privacy Act), and the Treasury, due to its administration of the National Consumer Credit Protection Act 2009 (the NCCP Act).

The review’s discussion paper (available at www.ag.gov.au) provides information on the current operation of the consumer credit reporting system and the operation of financial hardship arrangements. The paper seeks input from the community (by way of written submissions) about the reporting of financial hardship information in the consumer credit reporting system, including whether the current approach should be changed, the reasons for any proposed changes, and the nature of any proposed changes. The paper is not a general review of repayment history information (RHI) in the consumer credit reporting system, however the interaction between RHI and hardship arrangement information is within the scope of the review.

The closing date for submissions is 10 June 2018.

[Source: Discussion Paper: Consumer credit reporting and hardship, www.ag.gov.au - April 2018]

CREDIT reporting & hardship

An ASIC media release details that surveillance undertaken by the regulator found Cash Converters Personal Finance

Pty Ltd (‘Cash Converters’) had systematically failed to meet regulatory guidelines on debt collection practices, including by too frequently contacting consumers.

ASIC found that as a result of poor internal controls and policies, Cash Converters routinely breached Regulatory Guide Debt collection guideline: for collectors and creditors (RG 96), which recommends that consumers be contacted regarding a debt not more than three times per week or 10 times per month.

Cash Converters also provided incorrect information to consumer credit reporting agency Equifax. This may have resulted in up to 38,500 customers being reported with inaccurate amounts owing over a one-month period.

The release details in response to ASIC’s concerns, Cash Converters is now outsourcing all debt collection work to a specialist third party debt collector. ASIC has also imposed licence conditions on Cash Converters to require it to obtain ASIC’s consent before returning debt collection activity in-house. Cash Converters has also worked with Equifax to ensure all incorrect credit listings have been removed.

The company has paid a $650,000 community benefit payment to help fund the National Debt Helpline. The Helpline assists consumers who have trouble managing debt or paying bills.

ASIC Deputy Chair Peter Kell said, “ASIC expects all financial service providers to have appropriate systems and controls in place to ensure that debt collection practices are consistent with the Guidelines. It is also critical that licensees ensure that credit information provided to credit bureaus is accurate.”

[Source: ASIC Media Release 18-149MR - 24 May 2018]

POOR practices costly

MEDIA & NEWS

The Federal Court of Australia on 16 May 2018 ordered a penalty of $2 million against Thorn Australia Pty Ltd’s (Thorn’s) Radio Rentals for contravening its responsible lending obligations.

In handing down the penalty, the Court found that Thorn failed to make the necessary inquiries and take steps to verify the financial situation of its customers, and failed to conduct a proper assessment of the suitability of the leases it provided.

The court will publish its written judgment in due course. Thorn are also required to pay ASIC’s court and investigation costs of $240,000.

The penalty follows an investigation by ASIC into Thorn’s leasing practices, focusing on whether people signing up to the leases had the capacity to pay. The breaches relate to more than 270,000 leases entered into between January 2012 and May 2015.

On 23 January 2018 ASIC announced a package of regulatory outcomes against Thorn’s consumer leasing businesses Radio Rentals, RR and Rentlo Reinvented, to address past poor conduct and protect future customers. The package of outcomes included $6.1 million in refunds to customers and write-offs of default fees, and an additional $13.8 million in customer refunds of excess lease payments.

On the same day, ASIC lodged civil penalty proceedings with the Federal Court of Australia. In these proceedings, Thorn admitted to four contraventions by Radio Rentals of the National Credit Act in respect of each of the 275,060 consumer leases it entered into in from 23 January 2012 to 1 May 2015. Radio Rentals is providing refunds for affected customers as part of its Enforceable Undertaking to ASIC. Radio Rentals will contact all customers who are eligible for a refund or write-off by 7 November 2018.


RESPONSIBLE lending breach

ASIC recently issued three infringement notices to debt management firm Fox Symes and Associates Pty Ltd (Fox

Symes) leading to the company paying a total of $37,800 in penalties for making potentially misleading statements in its advertising.

ASIC reports it took action against Fox Symes after it made a number of potentially misleading representations in banner advertisements, Google ads and on its website. These representations included ‘Free Debt Assistance’, ‘Reduce Debt in Minutes’ and ‘15sec Approval’.

ASIC was concerned that such statements misrepresented the cost and speed of Fox Symes’ debt management services.

ASIC Deputy Chair Peter Kell said “Debt management firms are often engaging with particularly vulnerable consumers who are seeking assistance with their debts. They should be careful not to misrepresent their services using high impact terms like ‘free’, ‘minutes’ and ‘seconds’ suggesting that debt assistance will be quick and at no cost.”

The background leading to the issue of the infringement notices is reported by ASIC as:

• ‘Free Debt Assistance’ appeared in a banner advertisement and on the Fox Symes website. Fox Symes did not disclose to consumers that there was a limit to the ‘free debt assistance’ and that charges apply for most of Fox Symes’ services. The ‘free’ component referred to the initial first phone consultation.

• ‘Reduce debt in minutes’ appeared in banner advertisements. As Fox Symes’ services generally require engagement with third parties, a reduction in debt cannot feasibly be achieved in minutes, seconds or any other similar short period of time.

• ‘15sec approval’ appeared in paid Google Adword results. Where Fox Symes provides credit services, the responsible lending requirements under the National Consumer Credit Protection Act 2009 (Cth) apply. Approval could not be provided within such short timeframes.

Fox Symes voluntarily amended its advertising once ASIC raised its initial concerns.


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MEDIA & NEWS

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Australian Financial Complaints Limited (AFCL) on 1 May 2018 received authorisation from the Minister for Revenue and Financial Services to establish and operate the Australian Financial Complaints Authority (AFCA).

Under the Authorisation AFCA will commence accepting new complaints on 1 November 2018. All financial firms required to hold membership of an external dispute resolution scheme will be required to join AFCA by no later than 21 September 2018.

The current Transitional Board of AFCL was formed for the purpose of making the application for authorisation and is chaired by Prof The Hon Michael Lavarch and comprises the FOS Board and two members of the Superannuation Complaints Tribunal Advisory Council.

The inaugural AFCA Board, chaired by the Hon. Helen Coonan formally assumed responsibility from 4 May 2018 for the implementation of the new scheme. The AFCA Board comprises the Hon. Helen Coonan, four directors appointed by the Minister and six ongoing directors from the AFCL Transitional and FOS Boards.

The four board members appointed by the Minister were:• Ms Claire Mackay appointed as an industry director - being a highly regarded financial planner, she will bring the perspective

of small financial firms to the AFCA board.• Mr Andrew Fairley appointed as an industry director - being an equity lawyer with over 35 years’ specialist experience in

superannuation he will bring the perspective of the superannuation industry to the AFCA board.• Ms Erin Turner appointed as a consumer director - being an experienced consumer advocate, she will bring the perspective of

consumers of financial services to the AFCA board.• Mr Alan Wein appointed as a consumer director - being a lawyer, mediator and experienced advocate for small and medium

sized businesses he will bring to the AFCA board an understanding of the experiences of small businesses in dispute with financial services businesses.

An early action of the new AFCA Board will be to consult stakeholders on the proposed AFCA Rules and on an interim funding model for the new scheme. It will also work with financial firms on the process to formally become a member of AFCA by 21 September 2018.

The AFCA Board will continue working with the Credit and Investments Ombudsman (CIO) Board on the necessary arrangements for a transfer of its members and operations to AFCA.

In the lead up to the commencement of the AFCA EDR scheme on 1 November 2018, AFCA will be actively engaging with all its stakeholders, including consumer organisations.

[Sources: Media Releases by Minister for Revenue and Financial Services - 1 May 2018]

AFCA authorisation

In the 2018-19 Budget, the Australian Government responded to the Black Economy Taskforce’s Final

Report - this included an announcement of an economy-wide cash payment limit of $10,000 for payments to businesses for goods and services, to apply from 1 July 2019. Transactions in excess of this amount thereafter would need to be made using the electronic payment system or by cheque.

As the Government proceeds to introduce the limit, Treasury has recently issued a Consultative Paper: ‘Introducing an Economy Wide Cash Payment Limit’ with the aim of seeking to strike the right balance between cracking down on black economy participants using large cash transactions to avoid their tax obligations, and ensuring that businesses doing the right thing are not unduly burdened by increased red tape.

The consultation paper also seeks the views of stakeholders to identify further issues for consideration in implementing this measure. This includes views on reporting obligations, integrity measures and whether any exemptions apply.

Responses from interested parties to this consultation are possible until 24 June 2018.

[Source: Consultative Paper: ‘Introducing an Economy Wide Cash Payment Limit’ www.treasury.gov.au - 25 May 2018]

CASH limit

VALE: David Sidney Cains (30/05/53 - 20/04/18)

Growing up, we’re often taught “not to judge a book by its cover” as a warning to not prejudge the worth or value of something or someone by outward appearances alone. On first meeting David Cains, many may have dismissed him as someone who was just loud and opinionated - those who did so, frankly didn’t look beyond the cover.

Never a conformist, and often reflecting on how he used every possible opportunity to get out of school with football being a favoured diversion yet despite this, David was always in search of knowledge. This quest never wavered propelling him to complete an MBA specialising in Small to Medium Enterprise and Entrepreneurship in 1995 and also to undertake many training courses to improve his farming skills and knowledge.

In 1975, starting his own business in credit management and debt collection, David’s eColl group of companies grew significantly over the years. Always beside him was his wife, Roselle. David’s children have each worked in the business at one time or another with it continuing to be run by the family.

He is survived by Rose, their four children Tara, Sian, Navarre and Piers and their families.

Never a passengerThroughout his career, David was always an active member of the associations representing his industry both here in Australia and overseas and with his ‘can do’ approach to life, it was inevitable he was always quickly involved in whatever the groups were working on.

With the Institute of Mercantile Agents he held many roles including for several years as its National President.

His work on campaigns in respect to privacy and legislative changes affecting the debt collection industry were widely respected and admired. Since his passing, I’ve received messages from many who knew David and I share a couple of those messages here:

David has left an amazing professional legacy, something few people can achieve. That legacy benefits not only the whole of the mercantile agency profession but also the debtors with whom it is engaged.

We know David will be sorely missed but that his legacy will be a testament to his commitment to, and passion for, the sector.

And

Through the years David has been a respected colleague, treasured friend and tireless industry champion - not only for the IMA at home in Australia but for ACA International and so many others around the world. He will be greatly missed.

A farming lifeIn 1983, David and Rose purchased a small farm in the Hunter Valley. His affinity with country life can be tracked to childhood holidays on a relative’s farm - many will recall David regularly proclaiming how he loved life on his farm and in the country. My strong memory from first meeting him in the late 80’s is of David every Friday evening packing his young family up and heading to the farm before returning to the city late on Sunday nights.

In the late 90’s, David’s farming interests grew in the Hunter Valley with a total landholding of over 2,000 acres and 500 head of cattle - the 100% pure bred Black Angus beef raised there by David and his farm manager have won many accolades.

The larger farm saw David spending a fair bit of his time there allowing him to also pursue a couple of other great loves: driving (there were few places in Australia David hadn’t been to) and riding motorcycles.

For the past 10 or so years, David drove from the farm (60 kms each way) every Wednesday night to catch up over dinner with me and my group of mates in Newcastle. He looked forward to the conversations at the weekly dinners which covered many topics from the week’s politics, to the latest sporting results and catching up on what was happening with our respective families and work. Inevitably, David would entertain us with his latest tale of keeping his much loved fleet of vehicles on the road - there was much laughter and good natured stirring involved.

Boundless generosity David was a great and very generous supporter of many causes and activities.

Football always featured large in David’s interests and so it was no surprise he was a strong supporter and long


FOCUS

Alan Harries shares some reflections on David and his life well lived.

FOCUS

term significant sponsor of both Gordon Rugby and the Newcastle Knights.

In 2011 wary of financial problems besetting Gordon Rugby, David encouraged a group of former players to get involved and to review the club’s financial situation - they discovered their club was trading technically insolvent and needed drastic change to survive.

Over the next year, that group successfully turned the financial fortunes of the club around. Those involved say this may never have occurred if David had not cared so much about the club and hadn’t cajoled them into action whilst himself helping to establish schemes of arrangements to ensure all creditors were paid.

David’s involvement with the Newcastle Knights was very similar - he was a long term sponsor and supporter and one whom the club could always rely upon to put his hand in his pocket to help with fundraising and sponsorship of individual players.

Over the years, I’ve watched many league and union games with David here in Australia and NZ and also in 2007 in France. I don’t think, I will ever be able to watch a game and not hear David’s constant banter about the play or the deficiencies of the referee.

I recall David calling me one Saturday to see where the local rugby was on at. There were games not far from his farm, so he decided to head over there for the afternoon.

He later told me he enjoyed himself immensely. He knew a few locals there but on visiting the BBQ area he saw the fellow was disorganised and struggling to cope, so David donned an apron and spent the next couple of hours cooking and chatting away. I can only imagine the local club members afterwards wondering, “who was that aproned man?”

There were so many other causes in which David participated and gave so generously. Such as his frequent large donations to the Dorrigo Rail Museum, his donation of a defibrillator to the local rural fire service and his assistance and donations to an Australian based charity working on the removal of land mines in Vietnam and Cambodia. This is to name just a few!

A couple of years ago the Broughton Beef Syndicate had a project to raise funds for the Heritage Churches in the Paterson Gresford Parishes of the Anglican Church. David although not involved in the churches not only contributed with great generosity but also with all night efforts for the 24 hour mountain-bike event held to raise community funds.

A mutual friend recalls David as extraordinarily talented in so many areas, adding that if you had a problem, David had the answer, which he would provide with great enthusiasm.

Knowing David these past 30+ years, I have learnt that he truly was one of a kind: rather than being a shrinking violet, David was more of the ‘bull in the china shop’.

No matter where we went, whether at meetings for work & the industry, with regulators & legislators, at the football or in social gatherings no-one was ever left wondering what David thought - he was quick, had opinions and a great and infectious ‘can do’ attitude. He was incredibly generous and caring.

From the many messages and calls I’ve received since the news of his passing, it is very evident to me that David was very much loved and respected.

Personally, I remember David as the great, loyal and supportive mate, who will be very much missed.

Alan Harries is the IMA’s CEO

9www.imal.com.au | Jun/Jul 2018 | AGENT |

there were few places in Australia

David hadn’t been to

BANKING & FINANCE

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established on 14 December 2017 by the Governor-General of the Commonwealth of Australia, His Excellency General the Honourable Sir Peter Cosgrove AK MC (Retd). The Governor-General issued Letters Patent which formally appoint the Royal Commissioner and outlined the Terms of Reference for this inquiry that require and authorise the Commission to inquire into the following matters:

(a) whether any conduct by financial services entities (including by directors, officers or employees of, or by anyone acting on behalf of, those entities) might have amounted to misconduct and, if so, whether the question of criminal or other legal proceedings should be referred to the relevant Commonwealth, State or Territory agency;

(b) whether any conduct, practices, behaviour or business activities by financial services entities fall below community standards and expectations;

(c) whether the use by financial services entities of superannuation members’ retirement savings, for any purpose, does not meet community standards and expectations or is otherwise not in the best interests of those members;

(d) whether any findings in respect of the matters mentioned in paragraphs (a), (b) and (c):

(i) are attributable to the particular culture and governance practices of a financial services entity or broader cultural or governance practices in the relevant industry or relevant subsector; or

(ii) result from other practices, including risk management, recruitment and remuneration practices, of a financial services entity, or in the relevant industry or relevant subsector;

(e) the effectiveness of mechanisms for redress for consumers of financial services who suffer detriment as a result of misconduct by financial services entities;

(f) the adequacy of:

(i) existing laws and policies of the Commonwealth (taking into account law reforms announced by the Commonwealth Government) relating to the provision of banking, superannuation and financial services; and

(ii) the internal systems of financial services entities; and

(iii) forms of industry self-regulation, including industry codes of conduct;

to identify, regulate and address misconduct in the relevant industry, to meet community standards and expectations and to provide appropriate redress to consumers;

(g) the effectiveness and ability of regulators of financial services entities to identify and address misconduct by those entities;

(h) whether any further changes to any of the following are necessary to minimise the likelihood of misconduct by financial services entities in future (taking into account any law reforms announced by the Commonwealth Government):

(i) the legal framework;

(ii) practices within financial services entities;

(iii) the financial regulators;

(i) any matter that has occurred or is occurring overseas, to the extent the matter is relevant to a matter mentioned in paragraphs (a) to (h);

(j) any matter reasonably incidental to a matter mentioned in paragraphs (a) to (i).

AND, without limiting the scope of the inquiry or the scope of any recommendations arising out of the inquiry that the Commission may consider appropriate, for the purpose of the inquiry and recommendations in relation to the matter mentioned in paragraph (f):

(k) direct the Commission to have regard to the implications of any changes to laws, that it proposes to recommend, for the economy generally, for access to and the cost of financial services for consumers, for competition in the financial sector and for financial system stability; and

(l) authorise the Commission to have regard to comparable international experience, practices and reforms.

The Commissioner, the Honourable Kenneth Madison Hayne AC QC, is authorised to submit an interim report no later than 30 September 2018, and will provide a final report by 1 February 2019. ■

Source: ‘Letters Patent - Financial Services Royal Commission’ - financialservices.royalcommission.gov.au

TERMS of reference


www.imal.com.au | Jun/Jul 2018 | AGENT |11

It was inevitable once the Royal Commission was reluctantly but finally

agreed to by the Federal Government that this inquiry would have consequences for the financial sector. However, few would have anticipated just how swiftly the reputations of some of Australia’s most trusted corporations would be shredded by the testimony of witnesses, both by those with tales of alleged misconduct by the sector and also by the very evidence under cross examination of the most senior representatives of those corporations.

PwC Partner and former vice-president of the Australian Council of Trade Unions, Mr Paul Howes aptly told a conference in May1 that “a royal commission was a ‘difficult thing to go through’, noting that as an ‘institution under investigation, you can’t really win’.”

The Royal Commission’s hearings in late May focussed on issues associated with the banks and their small to medium business clients and specifically at disputes over the security provided for loans.

Observers such as Small Business and Family Enterprise Ombudsman, Kate Carnell and Peter Strong, Chief Executive of the Council of Small Business of Australia both have expressed2 that the outcome of the Royal Commission should not be to significantly create greater hurdles for small business to access finance.

Interestingly, National Australia Bank is predicting a higher proportion of future small business loans will be granted without customers needing to pledge security but according to Chief Executive of NAB’s business bank, Anthony Healy3 this trend reflects competition from fintech lenders, which is a bigger driver for the change rather than what might come out of the Royal Commission.

However, it seems concerns of adverse credit consequences are growing momentum, as “Moody’s issued a warning the Hayne banking inquiry could result in tougher regulation, which could slow economic growth by reducing the availability of credit. It described the

credit implications of the commission as ‘negative’ for the major banks.”4

UBS a global firm providing financial services in over 50 countries has indicated5 a “view that residential property prices will fall more than 5 per cent in 2019, as stricter lending criteria (mainly through the use of higher living expenses and debt-to-income limits) are introduced following the royal commission. UBS believes this will reduce the borrowing capacity of lenders by 30 per cent to 40 per cent.”

If that prediction isn’t alarming enough, UBS also points out that every 10% fall in house prices will likely be followed by a 10% fall in new vehicle sales. Predictions around stricter lending criteria potentially will have flow on consequences for our sector.

Social licence vs compliancePaul Howes provided a useful

perspective on the organisational behaviour under the microscope at the Royal Commission with these observations6:

“This is the age of the customer, the customer is king. Lots of organisations are struggling to deal with that and particularly how you connect your customer promise with the reality of your operations.“Historically, financial institutions have looked at their licence to operate through the prism of the regulatory licenses they are required to get.“What has not worked as well has been the understanding of what the concept of a social licence to operate is and how you achieve one and maintain a social licence…”

OpportunityWhether the Royal Commission will

have long term adverse consequences for the financial sector is yet to be seen, however one party’s discomfort may be an opportunity for others to increase market share.

BANKING & FINANCE

BEHAVING badly?The AGENT looks at some of the early learnings and observations arising from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Does the behaviour amount to systemic

conduct issues on the part of the banks and

the other financial service providers?

Commissioner Kenneth Madison Hayne AC QC


BANKING & FINANCE

A survey7 recently commissioned by the Customer Owned Banking Association (COBA) asked two questions - whether the Royal Commission caused respondents to consider changing their banking institution and whether they were more or less likely to switch institutions as a result of the Royal Commission.

The research reportedly shows that “about one in three Australians are more likely to switch their banking institution as a direct result of the Royal Commission”.

COBA chief executive Michael Lawrence told Financial Standard “the feedback we’re getting is that there is great interest in a model that puts customers first, where 100% of profits are used to benefit customers.”

Likely outcomesContrary to what might be the

expectations from some of the public, the Royal Commission can’t resolve individual disputes, nor can it fix or award compensation or make orders requiring a party to a dispute to take or not to take any action.

There are undoubtedly important lessons to be learnt from the matters canvassed by the Royal Commission but the real questions to be answered are how widespread is the misconduct across the customer bases of the financial institutions and how representative in the

myriad of banking relationships are these individual cases?

Has there been systemic misconduct which arises from shortcomings in the existing framework of laws and regulations and if so, how can those shortcomings be remedied?

The evidence heard at the Royal Commission clearly points to bad behaviour - the challenge for Commissioner Hayne will be in determining with whom and why that bad behaviour lies. Does the behaviour amount to systemic conduct issues on the part of the banks and the other financial service providers?

The Royal Commission’s Terms of Reference fall short of requiring Commissioner Hayne to report on whether there is bad form too on the part of customers. Commissioner Hayne is however to report on any changes needed to the following to minimise the likelihood of misconduct: the legal framework; practices within financial service entities; and the financial regulators.

Commissioner Hayne is authorised to submit an interim report no later than 30 September 2018 and is to provide his final report by 1 February 2019.

Christopher Joye, an economics columnist with the Australian Financial Review makes a valid observation8:

“With Australians using more

than 50 million bank accounts and loan products, it is not hard to find scores of individual misconduct cases that in isolation might otherwise imply the existence of wider problems. Yet unless the commission analyses the universality of these issues, it will be impossible to arrive at credible conclusions as to whether they are fundamental dysfunctions rather than the idiosyncratic failings that unavoidably arise from an industry that employs more than 500,000 people.” ■

FOOTNOTES

1 “Banking royal commission could lead to over-regulation warns Paul Howes” www.afr.com - 27 May 2018

2 “Fears royal commission could backfire for small business” www.smh.com.au - 27 May 2018

3 bid


5 “Royal commission will reduce lending and increase costs” www.afr.com - 25 May 2018


7 “Royal Commission backlash continues for banks: Research” www.financialstandard.com.au - 29 May 2018

8 “Royal commission will reduce lending and increase costs” www.afr.com - 25 May 2018


BANKING & FINANCE

Incorporating Advance National Services, Express Mercantile, Yates Professional Investigations, IDS Group & Trademark Investigation Services

Repossessions Floor Plan Audits Process Serving Field Calls Skip Trace Locations Investigations Brand Protection Legal Support Services Asset Inspections

www.riskandsecurity.com.auBrisbane Brisbane CBD Melbourne Sydney

Key takeouts from the proceedings and revelations of the Royal Commission are that the conduct of ‘Customer First’ and similar service initiatives is superficial, lacks delegated authority for front-line providers to deliver the promises, and is not reflective of the true, underlying corporate culture of many entities.

The evidence given by middle-and senior ranking employees has been, in many instances, embarrassingly inadequate and projects a degree of incompetence and lack of both product and customer knowledge.

A common deficiency of many service excellence endeavours is the lack of thoughtful, strategic initiatives emanating from the middle ranks. In essence, many middle managers are simply channels through which communications pass to and from senior management and front-line service providers.

Contributing to, and exacerbating the issue is the narrow and shallow experience and expertise of internal and younger external customer service trainers and facilitators. Much of the focus is on process, rather than the key components of input and outcomes. Rudimentary entry level content falls short of needs.

Our latest attitudinal research and analysis have identified eight sequential and complementary phases in the pursuit, attainment and maintenance of service excellence.

Personal interactions between customers, clients and front-line service providers involve only four of the eight.

In matters of quality personal customer service, everybody needs to commit, contribute to and be accountable for customer satisfaction and delight.

Accordingly, participants involved in effective training, development and planning workshops and conferences should be from all ranks, departments, sites and functions - including Board members.

The consequences are outstanding, quantifiable and refreshing.

Sometimes you do need to introduce a challenging - yes, possibly confronting - catalyst and facilitator for change.

A reorientation from doing things, to achieving outcomes is rewarding. It really is time to get serious about service.

Barry Urquhart is CEO of Marketing Focus and the keynote speaker at the 2018 Pickles IMA National Conference

Barry Urquhart’s learnings from the Royal Commission


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PICKLES IMA NATIONALCONFERENCE

PERTH

14-15 June 2018

MEMBER INFO


Pan Pacific Perth

207 Adelaide Terrace

9.15 am Swan Valley TourMeet in the foyer of the Pan Pacific Perth at 9.15 am (Departure is 9.30 am sharp)Tour ends at 4.45 pm when the coach drops attendees back at Pan Pacific Perth

6.00 pm Networking Drinks Sponsor: Access Mercantile Origins, Pan Pacific Perth

8.00 pm Delegates at leisure to make own arrangements*.

8.30 am Welcome Coffee Sponsor: Australiawide Mercantile Agency Foyer 3, Pan Pacific Perth

9.00 am Welcome & Opening Remarks Grand River Ballroom West, Pan Pacific Perth

9.05 am Session 1 - Changes, challenges & new opportunities Barry Urquhart, Marketing Focus

10.35 am Morning Coffee Sponsor: Choice Mercantile

MEMBER INFO

DAY ONEThursday June 14, 2018

DAY TWOFriday June 15, 2018


WHAT’S HAPPENING?

MEMBER INFO

11.00 am Session 2 - Privacy in practice Shane Sankey, Wallmans Lawyers

11.45 am Session 3 - Surviving the scam! Ian Young, retired finance lawyer

12.30 pm Lunch Break Sponsor: CreditSoft Solutions

1.30 pm Session 4 - Innovation: it is here to stay, are you? Bianca Eriyagama, RAC Insurance

2.15 pm Session 5 - Industry perspectives Alan Harries, Institute of Mercantile Agents

2.45 pm Afternoon Coffee Sponsor: AusDetect

3.15 pm Session 6 - Better practice in skip tracing Vidya Khan, Equifax

4.00 pm Session 7 - Agency supply chain Panel session

5.00 pm Close of sessions

6.30 pm IMA Annual General Meeting Grand River Ballroom West, Pan Pacific Perth

7.30 pm Conference Dinner Sponsor: Gallagher Grand River Ballroom East, Pan Pacific Perth

Program content accurate as at time of publication.

2018 PICKLESIMA NATIONAL CONFERENCE


ACCESS MERCANTILE AGENCY

MEMBER INFO

THANKSto our sponsors & exhibitors

2018 PICKLESIMA NATIONAL CONFERENCE



FORUM

IT’S all about trustNo matter what your business is,

taking on a new employee is risky particularly for our industry where employees are mostly tasked with direct consumer contact to attempt to respectfully and professionally deal with what are often emotionally charged issues around collections and repossessions.

Once the initial hire and training is complete, as the employer you rely on a fair deal of ‘trust’ as you issue work assignments to your new team member whether to be completed within an office environment or to work alone out of the office. For our industry, the majority of work undertaken not only involves adherence to compliance standards as the ACCC/ASIC debt collection guideline and client service level agreements but there is always the need to protect the brand reputations of your clients and your own business.

Ensuring that what you were told about the prior skills, qualifications and experience of job applicants is accurate is important and possibly even more crucial in supporting whether the applicant is someone worthy of your trust.

The reality is that some applicants do without compunction ‘gild the lily’ on job resumes - when such exaggerations and mistruths are discovered, what do they convey to you about the integrity and trustworthiness of the applicant concerned?

Caught outEarlier this month, Labour MP Barry

Urban was publicly caught out after engaging in such guiling practices, leading to him resigning from the WA State Parliament after the WA Legislative Assembly’s Procedure and Privileges Committee recommended he be expelled for repeatedly lying about his past.

According to an ABC report1 his unproven claims included:

• Having a degree from the University of Leeds;

• Having a Certificate of Higher Education in Policing from the University of Portsmouth;

• Completing 9 of 10 modules of a Diploma of Local Government;

• Being seconded from West Midlands Police in 1998 and serving with

the United Nations mission in the Balkans, where he provided security for a team investigating war crimes;

• Being posted a service medal by UK authorities, which he subsequently lost;

• Being entitled to wear such a medal; and

• Being under a genuine but mistaken belief that he was entitled to wear a replica police overseas service medal.

The committee reportedly found Urban in written submissions (which included forged documents) and in testimony deliberately sought to mislead the committee, with no evidence to support his string of claims

The report detailed Mr Urban had lied to the public and Parliament for years about his police service and education history.

Although Mr Urban’s embellishments may have been at the higher end of the continuum of exaggerations, the behaviour of embellishing and telling untruths is something employers need to be on guard for when hiring new employees.

“I’m not upset that you lied to me I’m upset that from now on I can’t believe you”German philosopher Friedrich Nietzsche


FORUM

If a job applicant’s fraudulent history goes undetected, the employer will have missed the first warning signs of a potentially untrustworthy character trait with potentially adverse consequences for the employer’s business and reputation, if the trait escalates or if those misrepresentations are later uncovered.

Protect yourselfWhilst robust pre-employment

checking should be a routine part of your recruitment processes, this is particularly important on those occasions whenever reviewing resumes or interviewing job applicants and you get a sense that perhaps things are not quite what they seem.

Comprehensive background checks, which can include the candidate’s education and past employment references, criminal history, credit/financial history and social media and internet checks (as relevant to the employment and the specific role) should

always be completed. Obviously you will need to be mindful

about consent and privacy and that a candidate’s permission should be sought before certain background checks are conducted.

Many believe it is harder for applicants to lie in their LinkedIn profile than on a resume because it is visible to others, some of whom may have worked with or studied with the individual - this public visibility carries an attendant risk and disincentive for the individual, that others might call them out on their exaggerations and mistruths.

Comparing the individual’s LinkedIn page with the resume you were provided is a quick and fairly effective way for employers to make sure they are being told the truth.

Other steps you can take as an employer include executing an appropriately drafted employment contract which includes:

• protection for you against

misrepresentations that come to light during the employment period

• a probationary period allowing you to efficiently end the employment if misrepresentations are uncovered during the probationary period.

• warranties that if breached by the employee might entitle you to terminate the employment and also claim damages - such warranties as:o the employee is suitably skilled

and competent to work in the role

o the employee holds necessary, licenses or qualifications to perform the role; and

o that all of the information provided by the employee about past work experience and qualifications is correct. ■

FOOTNOTES

1 “Barry Urban quits WA Parliament before he can be expelled after report highlights years of lying” www.abc,net.au - 8 May 2018

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31 May 2018: ASIC announced it will give financial firms transitional relief until 1 July 2019 to allow them time to update mandatory disclosure documents and periodic statements with the contact details of the Australian Financial Complaints Authority (AFCA). Under the disclosure relief provided by ASIC:

• Financial firms will have until 1 July 2019 to update EDR details to refer to AFCA in mandatory disclosure documents, periodic statements and exit statements; and

• Financial firms will not have to issue significant event notifications under s1017B of the Corporations Act associated with the transition to AFCA.

• Regulatory Guide 165 Licensing: Internal and external dispute resolution (RG 165) has also been amended to require information about predecessor schemes and AFCA to be provided to complainants from 21 September 2018.


STOP PRESSASIC gives disclosure relief during transition to AFCA

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IMA NATIONAL OFFICE17B Denney StreetBroadmeadow NSW 2292PO Box 233 Waratah NSW 2298Ph: (02) 4927 0477Fax: (02) 4927 [email protected] www.imal.com.au

NATIONAL BOARDNational President Basil FaulknerPh: (08) 9325 [email protected]

National VP Administration Daniel TaylorPh: (02) 8568 [email protected]

National VP Finance David CombrinkPh: (08) 9409 [email protected]

Immediate Past National President Alex CaruanaPh: (02) 8833 [email protected]

CEO Alan HarriesPh: (02) 4927 [email protected]

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FROM THE PRESIDENT

Stepping down this month after 3 years as the IMA’s National President

brings some mixed feelings, including as to what is in store for the incoming National President, the new National Board and our membership. We’ve all seen massive changes to the industry in recent years as well as restructuring the IMA to better represent our members – just as the industry changes, so must the IMA continue to evolve.

Some changes have been state based, for example, in NSW in 2016 when amendments were made to CAPI Act the IMA was involved, making submissions with many of the IMA’s recommendations being endorsed into the updated Act.

Here in my home state of Western Australia, the licensing of Debt Collectors changed from an annual licence to now being three year licensing.

There have been other changes within the IMA and with the IMA engaging in consultations on behalf of all its members with State and National regulators and legislators.

The changes we have seen, have in my opinion been mostly good for our industry making it a safer and a far more highly regarded profession.

Internally, the board has introduced new pathways to secure the financial position of this terrific organisation, which I’m sure we all agree is essential for our industry’s future longevity.

Reflecting on my own time as a volunteer involved in this organisation, it has been a truly rewarding experience to have been an active participant in a small way towards modernising and shaping the future. Along the way, I’ve also learned many things from my fellow board members and from members who attended conferences and have been involved in some of our teleconferences.

As a National Board Member and President, I had the pleasure to meet the late David Cains whose enthusiasm and drive underpinned his aim of seeing the IMA as a better industry body

commanding respect and recognition - I think we can all agree his vision and endeavours has resulted in a very positive outcome for us all. David, you will be sadly missed.

At this time, I thank all members and executives for their support during my tenure as President and particularly thank Alan Harries for his unwavering dedication to the IMA and his endless efforts to assist every single member in whatever their needs may be. I’m absolutely sure Alan will continue as the strong backbone and the torch bearer for the IMA and its members for a lot more years to come.

As the new Immediate Past President, I would also like to thank the outgoing past president, Alex Caruana for his enormous input and the support he has given to all of us and wish him well in his new venture.

Looking forward to a new era with the incoming National President, I am sure whoever that person is, he or she will take up the cudgel and keep the IMA recognised as being at the forefront of our industry.

Finally I would like to remind you all that this year’s AGM & National Conference is being held at the Pan Pacific Hotel in Perth on 15 June. I’m hoping to see as many of you as possible there, joining me in welcoming the incoming National President and National Board but also taking time to enjoy yourselves in the West.

Regards

Basil Faulkner

a truly rewarding experience

Basil Faulkner

IMA President Basil Faulkner on his retirement from office offers his reflections and thanks.

LAST words


FROM THE CEO

This past month has been very sad with the unexpected and sudden

passing of long term member, friend and supporter of the IMA, David Cains - I have included a Vale to David at page 8 of this edition.

Those who knew David and his very enthusiastic ‘can do’ attitude will understand his passing is an immense loss for the industry and this association.

Many of David’s contributions to the industry and the wider community were often in secret and as such may go unnoticed, but the hole that he has left - in energy, commitment and unbounding generosity - is only just beginning to show itself.

AGMThe National AGM will be in Perth

on Friday 15 June 2018 at 6.30 pm – as the time for written nominations for positions has now closed oral nominations for some positions will be called for at the AGM.

The outgoing executive members and particularly Basil Faulkner as he concludes his 3 years as National President are thanked for their respective efforts over the past year and best wishes are extended to those who take on the roles for the year ahead.

Conference time!As detailed at pages 15-18 arrangements

for the 2018 Pickles IMA National Conference in Perth on 14 & 15 June 2018 are finalised.

In the last few days before the event, the National Office team are tending to the remaining preparations before heading to the West The speakers have been busy in their preparations ranging from market research to report and comment on, through to teleconferences to ensure all are right for the panel discussions.

At the time of writing registrations are starting to slow down after the majority of delegates took advantage of the preferential early bird pricing.

The stage of a great venue, activities and sessions all point to another successful conference for members.

This year, the networking drinks will be on the Thursday evening before the Conference Sessions Day with the AGM on the Friday evening immediately preceding the Conference Dinner.

Again, in shaping the event, we have aimed at providing opportunities for delegates to meet, network and consider practical ideas to take back to their businesses. The valued and continuing support of our sponsors, exhibitors and speakers is acknowledged and very much appreciated.

The best advice I can offer to delegates especially those attending a National Conference for the first time is to make the most of the total experience by using the opportunity to get involved to meet and chat with your industry colleagues - I know from my own experiences and also from what members repeatedly tell me, the relationships you form at IMA conferences will serve you well in the years ahead.

I look forward to catching up with members at the 2018 Pickles IMA National Conference.

Cheers

Alan Harries

CONFERENCEIMA CEO Alan Harries reports on what members can expect at the 2018 Pickles IMA National Conference in Perth.

Alan Harries

meet, network and consider

practical ideas

ANNUAL GENERAL MEETING

The IMA’s National AGM shall be held in Grand River Ballroom West at the Pan Pacific Hotel in Perth at 6.30 pm on 15 June 2018.

Perth, 14-15 June 2018

2018 IMA National Conference

agent - imal.com.auimal.com.au/images/agent/agen0618.pdfe s t . 19 6 1 essential reading for those...

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