Brokers need to be aware that a client's fraudulent transactions may come back to haunt them under NCCP legislation, according to Genworth Financial.

Speaking to Vow Financial member brokers at the group's annual conference in Fiji in September, Genworth Financial segment manager Richard Socratous said it is no longer just the lender's responsibility to catch out potential client fraud.

"Under NCCP, brokers do need to care about the red flags," Socratous said.

Such red flags could fall into the false information basket - such as false employment or payslips - or something that a client has deliberately withheld from the broker.

"The responsibility is headed more your way," Socratous told Vow Financial brokers. "You don't want to see something come back to you in five years' time when economic conditions change. You have to be ensure that you have made reasonable enquiries."

Socratous suggested that broking businesses should put in place mechanisms that would help them identify fraud during the consultation and application process.