The MFAA has echoed warnings from Gadens Lawyers about the use of the term "independent" in describing the services provided by mortgage brokers.

An amendment to the NCCP released last week has dictated that mortgage brokers cannot describe their services as "independent", "impartial", "unbiased" or any other term with similar connotations.

MFAA CEO Phil Naylor has told Australian BrokerNews this restriction has been an MFAA guideline for some time. "There is nothing new in the NCCP rules. MFAA, after discussions with ASIC introduced the ... guidelines about seven years ago," Naylor said.

Among the guidelines introduced by the MFAA were restrictions on advertising independent, impartial or unbiased advice, promising the "best deal", using the term "guaranteed", advertising free services if the consumer incurs any costs or sacrifices any benefit or making subjective statements.

In spite of the MFAA guidelines, an online search by Australian BrokerNews revealed more than a dozen broker businesses - including MPA Top 100 Brokers - using the terms in their marketing copy.

"If that is the case I am surprised," Naylor said. "What the MFAA has in its code is already the law. ASIC [and the] ACCC did prosecute or warn a number of brokers in around 2003 [or] 2004 for the use of such terms."

Naylor warned that brokers using the terms were breaching the MFAA's code. "We have taken action against - or usually warned - members on many occasions in early years," he said.