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Finance and Mortgage Brokers

Individuals and companies who engage in finance and mortgage broking in Victoria, are regulated by the Consumer Credit (Victoria) Act 1995.

What is a Finance Broker?

A finance broker (sometimes referred to as a Mortgage Broker) is a person who negotiates consumer credit for a fee, or holds themselves out to the public as being prepared to negotiate consumer credit for a fee.

Licensing Requirements

You are not required to be licensed to act as a Finance Broker.

Section 37C of the Consumer Credit (Victoria) Act 1995 outlines those persons who are prohibited from engaging in Finance Broking.

Permission Requirements

Some people are disqualified from acting as a finance / mortgage broker. In some cases disqualified persons need to apply for permission from the Business Licensing Authority (BLA) to be permitted to engage in finance broking.

If you have any questions about permission requirements please contact the BLA.

Fees

Permission Application Fee: $175.40 - no GST payable.

Transfer of Credit Regulation to the Commonwealth

The Australian Securities and Investments Commission (ASIC) will gradually assume responsible for the regulation of consumer credit and credit related services during 2010. It is anticipated that from 1 July 2010, new national legislation will require Credit Providers to apply to ASIC for registration and then obtain an Australian Credit Licence (ACL).

A key aspect of the proposed National Consumer Credit legislation will be the requirement to be a member of an ASIC-approved EDR scheme.

For full details on the ACL and the National Consumer Credit legislation please visit the Consumer Credit website.

Communications about the national licensing scheme

Information about credit providers obligations under the new National Consumer Credit legislation will be made available and published in the lead-up to the introduction of the new National Legislation on the ASIC website: www.asic.gov.au. You can also subscribe to receive email updates from ASIC by visiting the ASIC Credit Reform Update website.

External Dispute Resolution

In order to qualify for registration and licensing, finance brokers must be a member of an ASIC-approved External Dispute Resolution (EDR) scheme.

From 1 July 2009 all registered credit providers have been required to be a member of an EDR scheme approved by the ASIC.

The details of approved EDR schemes and their contact details are available from the ASIC EDR website.