Site map Accessibility Contact us

Go to whole of WA Government search

Frequently asked questions (FAQs)

1. Who needs a finance brokers licence?
2. My company is an aggregator. Do we need to be licensed?
3. I have a company in the Eastern States and would like to conduct business in Western Australia. What do I need to do?
4. Is my finance brokers licence transferable?
5. Are finance brokers covered by the Corporations Act?
6. What are the educational requirements for a ‘B’ or ‘C’ class finance brokers licence?
7. What is the educational requirement for the grant of an ‘A’ class finance brokers licence?
8. I have a university degree. Do I still have to complete the finance broking qualifications to become licensed?
9. Do the fees contain GST?
10. Who is an ‘Authorised Person’ to witness my application?
11. Can I submit my application for the renewal of my finance brokers licence without all the supporting documents?
12. How old can my police clearance, credit check and references be?
13. I’ve changed my residential/business address. What do I need to do to update the licence records?
14. The business name has changed. What do I need to do to update the licence records?
15. Our company has changed directors. What do we need to do to update the licence records?
16. Can we have more than one business name?
17. Why do I need a registered office in Western Australia?
18. I have opened a branch of my finance broking business. What do I need to do?
19. Do I need to be employed by my mentor?
20. I have left my current employment/supervision. What do I need to do?
21. Do I have to maintain a trust account as a licensed finance broker?
22. Can I be covered under my employer’s professional indemnity insurance?
23. I no longer trade and wish to surrender my licence. What do I need to do?
24. Where do I obtain a copy of the Finance Brokers Control Act 1975 and the Code of Conduct?
25. How can I get a copy of the current register of licensees?

1. Who needs a finance brokers licence?

 See the Licensing page.

2. My company is an aggregator. Do we need to be licensed?

 As an intermediary between the borrower and the lender you would be required to hold a licence.

3. I have a company in the Eastern States and would like to conduct business in Western Australia. What do I need to do?

 You need to obtain a licence. The Act allows for any Australian resident to apply for a finance brokers licence to enable them to carry on business as a finance broker in Western Australia. The Act still requires that the Registered Office (for the purposes of section 37 of the Finance Brokers Control Act) must be located in Western Australia but does NOT have to be the same as your ASIC registered office address.

4. Is my finance brokers licence transferable?

No.

5. Are finance brokers covered by the Corporations Act?

Certain conduct may be captured by the Corporations Act. For information concerning financial services regulation, see the Australian Securities and Investments Commission.

6. What are the educational requirements for a ‘B’ or ‘C’ class finance brokers licence?

The current minimum education requirement for the grant of a restricted finance brokers licence is the successful completion of the following through any registered training organisation (RTO):

• Certificate IV in Financial Services (Finance/Mortgage Broking); and
• relevant supplementary WA material.

More information is available on the Qualifications page.

7. What is the educational requirement for the grant of an ‘A’ class finance brokers licence?

In addition to the Certificate IV plus relevant supplementary material required for a restricted licence, applicants for an ‘A’ class licence must have successfully completed one of the following:

• Diploma of Mortgage Lending
• Diploma of Lending; or
• Diploma of Financial Services (Lending).

More information is available on the Qualifications page.

8. I have a university degree. Do I still have to complete the finance broking qualifications to become licensed?

Yes. Evidence of successful completion of an approved qualification must accompany your licence application. However, most registered training organisations have a facility to assess your prior learning and credit all or part of the course based on previous qualifications or experience.

9. Do the fees contain GST?

No. The application and renewal fees are exempt from GST.

10. Who is an ‘Authorised Person’ to witness my application?

For a list of authorised persons, refer to Schedule 2 of the Oaths Affidavits and Statutory Declarations Act 2005.

11. Can I submit my application for the renewal of my finance brokers licence without all the supporting documents?

Yes, however the application will not be deemed lodged until all three components listed in Regulation 11(1) of the Finance Brokers Control (General) Regulations 2005 have been received:

• the renewal form,
• supporting documents and
• the renewal fee.

It is, therefore, necessary to submit all documentation by the required date to avoid late penalty fees and the lapse of your licence.

12. How old can my police clearance, credit check and references be?

A police clearance and credit check cannot be any more than 3 months old and references cannot be any more than 6 months old at the time an application is lodged.

13. I’ve changed my residential/business address. What do I need to do to update the licence records?

The Commissioner requires written advice within one month of the change and will re-issue a new licence with the updated details.

14. The business name has changed. What do I need to do to update the licence records?

Advise us of the change in writing and forward a copy of the business registration certificate within one month of the change so we may amend your details.

15. Our company has changed directors. What do we need to do to update the licence records?

The Commissioner requires written advice within one month of the change and each new director will need to submit the following:

• completed statutory declaration in support of application;
• Baycorp Advantage credit history report (not more than one month old). This report can be obtained free of charge within two weeks (or for a fee if it is required within a shorter period) by contacting Baycorp on (02) 9464 6000 or www.mycreditfile.com.au;
• original national police clearance certificate (not more than three months old). These can be obtained from Australia Post outlets for a fee; and
• at least two business references. References from relatives, partners, subordinates or co-directors will not be accepted and at least one reference must be from a person external to your current place of employment.

This is a standard condition of body corporate licences and failure to notify the Commissioner could result in a breach of the licence condition.

Note: where the new director holds a current licence, they will not need to provide any business references. All other documentation listed above will still be required.

16. Can we have more than one business name?

No. According to section 41(1)(a) of the Finance Brokers Control Act 1975, a licensee may carry on business as a finance broker under only ONE business name.

17. Why do I need a registered office in Western Australia?

Section 31(1) of the Finance Brokers Control Act 1975 stipulates that a licensee shall, on and after the day on which he commences to carry on business as a finance broker, and for so long as he carries on that business, have a registered office in the State.

18. I have opened a branch of my finance broking business. What do I need to do?

You must advise the Commissioner in writing of the branch location and who you have in bona fide control of the branch. The branch manager must be someone other than yourself and they must hold their own finance brokers licence. If they are not a director, they must also be an employee.

19. Do I need to be employed by my mentor?

There is no legislative requirement to be employed by your mentor.

20. I have left my current employment/supervision. What do I need to do?

If the conditions on your licence pertain to employment or supervision by the entity you have left, you will need to re-gain employment and/or supervision in order to continue operating as a finance broker. If new supervision is required you would need to supply a statement of responsibility completed by the licensed supervising broker. Alternatively, you may wish to apply to upgrade your licence from ‘C’ to ‘B’ class, removing the need for supervision.

21. Do I have to maintain a trust account as a licensed finance broker?

Only if you receive or hold monies on behalf of other persons in the course of your broking business.  If you do not handle trust monies you are exempted from the requirement to have a trust account, bond and auditor under Regulation 5 of the Finance Brokers Control (General) Regulations 2005.

22. Can I be covered under my employer’s professional indemnity insurance?

You will only be covered by your employer’s insurance if you are an employee. Consumer Protection published an e-bulletin (dated 02/01/2008) as a guideline in determining if you are an employee.

23. I no longer trade and wish to surrender my licence. What do I need to do?

You will need to return your licence to Consumer Protection together with written confirmation that you are no longer operating as a finance broker.

24. Where do I obtain a copy of the Finance Brokers Control Act 1975 and the Code of Conduct?

• The Code of Conduct
• The Act is available from the State Law Publisher. 

25. How can I get a copy of the current register of licensees?

Consumer Protection regularly publishes a register of licensed finance brokers.