TNP says it isn't out to "rape, pillage and plunder"

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TNP insists it isn't out to “rape, pillage and plunder” with its plan to form its own professional association but many in the mortgage advisory industry are incensed.

Wednesday, February 22nd 2012, 6:00AM 3 Comments

by Jenny Ruth

TNP's announcement came just a week after the NZ Mortgage Brokers Association (NZMBA) and the Professional Advisers Association (PAA) announced plans to become a single organisation from early April.

NZMBA chairman and chief executive Darren Pratley is also TNP's home loans director, raising questions of conflict of interest. As well, TNP director of development, Dave McMillan, was chief executive of PAA for three years until May 31, 2009.

Pratley says although he knew of the plans to form TNPPA, he had no involvement in its development and denies any conflict of interest.

His focus had been entirely on the merger of the NZMBA and the PAA: “I've worked tirelessly for the industry,” he says.

“The individual members at the coal face have had a strong association and a strong voice. Industry associations are extremely important.”

None of the other NZMBA board members, including treasurer Stephen Wilton, who is a TNP adviser, had any knowledge of TNP's plans.

Wilton says the announcement of TNPPA's formation “obviously puts Darren in a very difficult position. I've seen the time he's put into the NZMBA and he's been solely committed to that.”

Wilton says he personally has put “a huge amount of time” into the NZMBA and is committed to an independent industry association.

“You can't just click your fingers overnight and put a cheaper fee structure into the market place,” Wilton says. The NZMBA was formed in 1997 and the PAA has a 60 year history.

TNP managing director Jeff Page says plans to launch TNPPA began late last year. Formal merger talks between the NZMBA and the PAA began in August last year.

Page says TNP's move isn't a case of “rape, pillage and plunder,” and isn't designed to undercut the PAA on fees.

“We're getting a lot of our advisers saying: we're getting more value out of what TNP is doing then what we're getting from our professional association. The industry associations, we don't think, have been doing enough for their members,” Page says.

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