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A new qualification for commercial finance broking has been developed by the FBAA in collaboration with the CFMIA, AAMC, and Accendo Financial in a move to set professional standards.
Brokers will soon be able to call themselves certified finance brokers (CFB), following the launch of a new education pathway for commercial and asset finance brokers.
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What does it entail?
The new qualification – costing just under $3,000 (and discounted for Finance Brokers Association of Australasia [FBAA] members) – has been built by the FBAA in collaboration with the Certified Finance and Mortgage Institute of Australasia (CFMIA), the AAMC Training Group, and Accendo Financial and is available to all brokers, regardless of association membership.
The certified finance broker designation course is self-paced and includes three foundational workshops (covering commercial lending skills, mastering cash flow, and business credit writing) plus advanced certifications covering six key topics:
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Business finance
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Personal finance
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International finance
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SMSF and reverse mortgages
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Obligations
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Mentoring
Brokers will undertake quiz questions during the three foundational workshops (which will also be conducted at FBAA PD days) while the advanced certification – delivered through an online learning platform that combines audiobooks and explainer videos – concludes in a short final exam.
Once the exam is completed, the assessment goes to the CFMIA and board for sign-off.
If a broker successfully achieves the certification, they may apply to the CFMIA to be granted status as a certified finance broker to use the initials CFB following their name (similar to how accountants may use CPA after their name).
Brokers can be a member of any broker association to undertake the qualification, but must have completed both the Certificate IV in Finance and Mortgage Broking and the ASQA-approved Diploma of Finance and Mortgage Broking Management (or a diploma of similar nature, approved by the CFMIA education committee) to undertake the CFB.
The CFB could be completed in as little as nine months, but the expectation is that brokers will take longer to work through the certification.
According to the FBAA, it is expected that the first cohort of brokers undertaking the CFB will qualify in early 2025.
Around 80 FBAA brokers are currently working through the second and third foundational workshops, with the expectation that they will achieve CFBs in the first half of the new calendar year.
The FBAA is also encouraging brokers who achieve the CFB to undertake its 24-month Broker Advantage Program, which hosts monthly deal workshops, Q&A sessions, and meet-ups in order to run through practical applications of the knowledge learned.
Why launch it?
Speaking to The Adviser about the CFB, Joanna James – the FBAA’s chief development officer – said the qualification had been built to ensure that commercial and finance broking education was held to a relevant standard level.
James said: “In the world of commercial and asset finance there are different standards and different requirements – and not enough requirements – around education and actually getting qualifications.
“Because it doesn’t have the same obligations as the consumer finance/NCCP space, there really hasn't been a formal qualification for commercial broking.
“Currently, there’s a lot of handed-down knowledge in that space.”
However, with more brokers now writing commercial and asset finance – and more borrowers expected to turn to the channel for SME and asset finance – the FBAA said there was “a huge need for resi brokers to understand more”.
FBAA managing director Peter White said: “The FBAA started as a commercial and asset broking association, back in 1993, and we wanted to go back to our roots and ensure that the education of commercial and asset finance brokers is adequate.
“The are several courses out in the commercial and asset sector, but many are around $10,000 for the course and I think that’s prohibitive.
“So we went about building this with some great people to ensure that we’re providing excellent, practical skill sets to finance brokers at a fair price.”
James said: “By setting professional standards through the CFB, we want to make sure that, if brokers are going to do education, it’s the right type of education and has the right application so that it’s not just purely theoretical; it’s information that brokers can use and actually build their businesses and diversify.
“One of the huge areas for growth in broking is going to be in commercial and asset finance moving forward. If you look at the penetration of loans written by brokers in that space, it’s pretty much the opposite of what’s happening in the resi space. So there’s massive room for growth.
“The broker of the future is really looking for this kind of professional recognition. And I think the next step for the industry is evolving into being seen as a profession. Programs like this the CFB is what’s going to take us to the next level.”
[Related: New qualification for equipment leasing and commercial finance launches]
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