FNS40821
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FNS40821 Licensing Requirements

Complete guide to ASIC licensing and state-specific requirements for mortgage brokers in Australia

Australian Credit Licence (ACL)

All mortgage brokers in Australia must hold an Australian Credit Licence (ACL) issued by ASIC or work as a credit representative under someone who holds an ACL. This ensures compliance with the National Consumer Credit Protection Act (NCCP).

Core ASIC Requirements

Educational Qualifications

Complete FNS40821 Certificate IV in Finance and Mortgage Broking or equivalent qualification that meets ASIC RG 206 minimum education standards.

Professional Indemnity Insurance

Maintain adequate professional indemnity insurance coverage (typically $2-5 million) to protect clients and your business from potential claims.

Responsible Lending Obligations

Adhere to responsible lending practices including making reasonable inquiries about client circumstances, verifying information, and ensuring loans are not unsuitable.

Professional Body Membership

Join MFAA (Mortgage & Finance Association of Australia) or FBAA (Finance Brokers Association of Australia) for industry support, CPD, and professional standards compliance.

Continuing Professional Development

Complete minimum 20 hours of CPD annually covering regulatory updates, industry trends, and professional skills development.

State-Specific Requirements

While the ACL sets national standards, some states have additional requirements for mortgage brokers

New South Wales
NSW
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Professional indemnity insurance
  • MFAA or FBAA membership recommended
  • Ongoing CPD requirements (20 hours annually)
Victoria
VIC
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Professional indemnity insurance
  • Enhanced due diligence practices
  • Regional professional development expectations
Queensland
QLD
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Professional indemnity insurance
  • Compliance with local legislation
  • Additional CPD requirements may apply
South Australia
SA
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Registration with local regulatory body
  • Professional indemnity insurance
  • State-specific training modules
Western Australia
WA
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Additional compliance checks
  • Professional indemnity insurance
  • Stringent professional development requirements
Tasmania
TAS
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Awareness of local laws
  • Additional licensing steps may apply
  • Regional compliance measures
Northern Territory
NT
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Territory-specific requirements
  • Professional indemnity insurance
  • Local regulatory compliance
Australian Capital Territory
ACT
  • Australian Credit Licence (ACL) from ASIC
  • FNS40821 or equivalent qualification
  • Professional indemnity insurance
  • MFAA or FBAA membership recommended
  • Standard CPD requirements

Licensing Costs

Expected Licensing Expenses
Budget for these costs when planning your mortgage broking career
ASIC ACL Application Fee$1,500 - $2,000
Professional Indemnity Insurance (Annual)$2,000 - $5,000
MFAA/FBAA Membership (Annual)$800 - $1,200
Police Check$42 - $87
CPD Training (Annual)$500 - $1,000
Total First Year$4,842 - $9,287

Important Note

These costs are in addition to your FNS40821 course fees. Many brokers work as credit representatives under an aggregator's ACL initially to reduce upfront licensing costs while building their business.