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By: Jessica Darnbrough
With the new licensing laws soon to be introduced, more and more aggregators are outlining their position on licensing.
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Following Advantedge’s announcement last month that it will let its brokers choose whether they want to seek their own Australian Credit Licence (ACL) or become a Credit Representative (CR) of an Advantedge ACL holder, Connective has re-confirmed its decision to require all of its brokers to obtain their own ACL.
Connective principal Mark Haron told The Adviser that brokers who held their own ACL would be able to control and operate their business as they see fit.
“If a broker has their own ACL, they can effectively control their own destiny. Also, it makes it easier for them to change aggregators if they need to,” he said.
“Brokers that are credit representatives under their aggregator’s licence run the risk of being left in the cold if an aggregator looses their licence for whatever reason.”
A broker cannot operate under a lender’s licence. As such, in the event that an aggregator lost their ACL, brokers would be forced to obtain their own before they could source home loan products for their customers.
Property Planning Australia director Will Foster said Connective’s decision to force its brokers to hold their own ACL made sense to his business model.
“Even before they said which side they would take we knew we wanted to have our own licence. We want to be able to control our business and not give that luxury to someone else,” he told The Adviser.
