INTRODUCTION
Access to mortgage finance plays a pivotal role in the South African residential property market. It is imperative that Consumers are protected and can have confidence in their engagements with Members when accessing Mortgage Origination Services, and similarly Credit Providers can have confidence in their engagements with Members.
PURPOSE OF THE CODE
The Code of Good Practice has accordingly been developed as a statement of principles and practices designed to set a standard of good industry practice and fair dealing by Members with Consumers and Credit Providers to instil public confidence in the operations of Members in providing the Mortgage Origination Services.
FORMAT OF THE CODE
The Code is a guide to good practice and is significantly principles-based. The Code rests on a foundation of ethical aspirations such as integrity and fairness. A list of ethical rules can never be exhaustive, and Members therefore have an obligation to use their ethical discretion when confronted with ethical challenges that the rules may not provide for expressly.
The Code of Good Practice has been approved by the Board of MORCSA and sets out, inter alia:
- the code of conduct, including principles relating to treating customers fairly (TCF), that apply to the manner in which Mortgage Origination Services are to be rendered by Members to Consumers;
- minimum standards of professional conduct and good industry practice, which must at all times be read with any conduct standard/s published by the Industry Regulator under the FSR Act or COFI Act when enacted;
- the disciplinary rules and procedures that will apply to Members and Key Individuals in the event of a contravention of the Code of Good Practice; and
- other matters relevant to standards and practices within and monitoring of the Industry.
CONTRAVENTIONS OF THE CODE
If any Member fails to conduct himself, herself or itself in accordance with this Code, Complainants (which may include MORCSA itself) shall be entitled, without prejudice to any other remedies at law, to make complaints to either the relevant Corporate Member and/or to MORCSA who will handle the Complaint in accordance with the Complaints Framework.
The Complainant shall also be entitled to make a Complaint to the relevant Ombud and/or Industry Regulator.
REVIEW OF THE CODE
MORCSA will review changes in the Industry with a view to ensuring the maintenance of good practice standards at all times and the Board, on the recommendation of the Conduct Committee, may amend this Code where there is a need or benefit to Consumers and/or the Industry in doing so.