WA Licensing

Information about licensing of finance brokers

Section 4 of the Finance Brokers Control Act (WA) 1975 states that a finance broker “means a person who –

1. as an intermediary, in the course of business negotiates or arranges loans of money for or on behalf of other persons; or
2. in the course of business, manages loans of money arranged or negotiated by the person for or on behalf of other persons”

Although many finance intermediaries (e.g. mortgage originators) do not handle investor funds they still fall within the definition of “finance broker” as contained in the Finance Brokers Control Act 1975 in that they are arranging and negotiating loans.

Section 26 of the Act requires that anyone carrying on business as a finance broker must hold a finance broker’s licence. Generally, employees of licensed finance brokers are not required to be licensed. However, any finance intermediaries who are operating as contractors, agents or franchisees of a licensed finance aggregator would not be considered to be in the employ of, and under the bona fide control of, the licensee. These contractors, agents and franchisees are required to be licensed in their own right.

Prior to submitting an application, all applicants should familiarise themselves with the relevant legislation and accompanying regulations.

Copies of these documents can be obtained from:

State Law Publisher
Ground Floor, 10 William Street
PERTH WA 6000
Telephone: 9321 7688
www.slp.wa.gov.au