MFAA vs FBAA

Hi guys

When I was looking for a broker, noticed that some are in the MFAA whilst others are in the FBAA. Is there any real difference between the two or is it similar to accountants with CA and CPA? Is there any impact on which lenders they'll be able to use? Does a broker even need to be a part of either or is it a prerequisite to be part of one?

 

Industry perception that MFAA is slightly more prestigious than FBAA but in reality it doesn't matter which industry body the broker is aligned to.

It is more important to understand why they are recommending a particular strategy (lender, product, etc) and how this recommendation fits in with the long term strategy.

 

Nothing like CA or CPA. Membership of 1 or the other is generlly complusory, but they are essentially meaningless which one a broker is a member of. It makes no difference in terms of lenders or any other matter.

If I had a choice I would be a member of neither.

 

FBAA membership is easier to obtain - they don't have a requirement for the diploma (just the cert IV).

Having said that - it really doesn't matter a great deal and certainly doesn't indicate whether the broker is quality or not.

Cheers

Jamie

 

Thanks all, didn't realise it was compulsory.

 

Has anything changed in this space with MFAA and FBAA?

 

It used to be that the FBAA didn't require the diploma. That may still be the case, but aggregators generally do require the diploma, so don't let that influence your decision.

The FBAA comes across as being 'more for brokers', whilst there is the perception that the MFAA is influenced by lenders somewhat. Hard to say if it's true or not. I've often had the perception that the MFAA is more effective than the FBAA, but that's also difficult to prove.

At the end of the day I don't really think it makes much difference which you choose. Figure out your aggregator first and get guidance from them. In fact the aggregator should probably be the very first decision you make, before the industry body or the course work.

 

No one has ever asked me which membership I have. Just go for the cheapest

 

Thanks for the replies everyone.