How Finance Brokers Are Regulated in Australia
A general overview of who regulates mortgage and finance brokers in Australia, and what that means for you as a borrower.
Who regulates brokers
Mortgage and finance brokers in Australia operate under credit licensing requirements overseen by the Australian Securities and Investments Commission (ASIC). Brokers must hold their own Australian Credit Licence (ACL) or operate as an authorised credit representative under someone else's licence.
Most brokers are also members of one of the two main industry associations — the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) — which set professional and educational standards for their members.
What this means for you
A licensed broker has obligations around responsible lending — they need to make reasonable inquiries about your financial situation and objectives before recommending a loan, and the loan needs to be "not unsuitable" for your circumstances.
If you're comparing brokers, it's reasonable to ask about their licensing status, association membership, and how long they've worked with clients in your profession.
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If something goes wrong
The Australian Financial Complaints Authority (AFCA) is the external dispute resolution scheme for financial services complaints, including complaints about brokers. Most brokers and lenders are required to be AFCA members.
This page is general information only and not personal financial advice. Confirm current details directly with a broker, lender, or the relevant government or professional body.