Broker Regulation

A proportion of the business of AELA members is introduced through brokers. In this way, brokers assist in meeting the equipment finance needs of small to medium size enterprises (SMEs).  AELA works collaboratively with relevant broker industry associations.  The Commercial Asset Finance Brokers Association (CAFBA) is an AELA member.

The introduction of the National Consumer Credit Protection Act in 2010, saw statutory regulation of equipment finance brokers only applying when they arrange finance to meet consumer client needs. These brokers must hold an Australian Credit Licence, comply with broad-ranging licensing obligations and conditions and responsible lending obligations when introducing consumer finance.

More generally, fair trading standards prohibiting misleading or unconscionable conduct under the Australian Securities & Investment Commission Act apply to brokers when dealing with either commercial or consumer clients.

In addition, CAFBA requires, as a condition of membership, for brokers to meet minimum standards of education, continuing professional development, insurance and dispute resolution.  This measure of self-regulation extends to all members, whether arranging consumer or commercial finance.