A broker is pushing for longer, tougher mentorship programs for new brokers, as lending complexity continues to escalate.
An Adelaide-based broker is calling for new entrants to complete a mandatory three‑year apprenticeship program before operating independently, saying current pathways left a significant gap between theory and real-world responsibility.
Sergio Stefano, CEO and head broker of Adelaide‑based Brokerage & Co (and president of the Finance Brokers Association of Australia’s (FBAA) South Australia and Northern Territory branch), said he believed the industry’s training models had not kept pace with rising complexity in credit.
Stefano said that the profession needed to move beyond minimum licensing requirements and confront whether new brokers were genuinely prepared to manage client files on their own.
“As lending becomes more complex, we need to ask ourselves, are brokers educated enough?” he said.
Stefano said he wanted to see a formal, three-year apprenticeship period for those entering the industry without prior credit experience.
“I believe the current crop of new‑to‑industry broker should undergo a mandatory three‑year mentorship before going out on their own,” he said.
“Not a tick‑the‑box program. A real, comprehensive apprenticeship, sitting alongside experienced brokers, learning how to navigate complex lending scenarios, understanding what good client outcomes look like, and developing the professional judgement that only comes with time and guidance.”
Brokers guide borrowers through ‘biggest financial decision of their lives’
The brokerage chief warned that allowing underprepared brokers to guide clients through major borrowing decisions puts both households and the profession’s reputation at risk.
“Handing someone a credit licence and wishing them luck is no longer good enough. The clients walking through our doors aren’t just buying a home. They’re making the biggest financial decision of their lives, often with debt structures that will follow them for decades,” he said.
“They deserve better than a broker who is still figuring things out at their expense.”
Yet he said new entrants who had spent years in the banking industry may require a shorter runway but should still be supported through a one-year structured mentoring framework.
“The knowledge is there, but brokering is a different discipline. The client relationship is different, the responsibility is different, and the commercial reality is very different,” Stefano explained.
Bridging the gap between training and practice
Under current rules, aspiring brokers must satisfy education and licensing requirements overseen by the Australian Securities and Investments Commission (ASIC), including obtaining at least a Certificate IV in Finance and Mortgage Broking.
Many must also complete a diploma within 12 months and are typically required by aggregators and industry bodies to work under a mentor for their first two years.
Stefano said these frameworks were important but added they did not fully bridge the distance between theory and the day‑to‑day realities of running a business.
“That gap is where mistakes happen, that gap is where trust gets broken,” he said.
Institutions urged to ‘step up’ on education
Stefano highlighted the strain on brokers who already operated under a licence, saying many lacked the capacity to design comprehensive training frameworks on top of their existing workloads.
He said that asking small licensees to shoulder this burden risked patchy standards – and said aggregators, professional associations, and training providers needed to take the lead in codifying education programs.
“Brokers who hold their own Australian Credit Licence are already balancing compliance, business operations, and client demands, they simply don’t have the capacity to design and enforce robust education frameworks on their own,” he said.
“That responsibility needs to sit with the institutions that support the industry, ensuring consistent, practical, and ongoing education that truly prepares brokers for the realities of the profession.”
Stefano warned that conditions were unlikely to become simpler, adding that ongoing product innovation and regulatory change would only intensify broker demand.
“Lending is only getting more complex, more products, more regulation, more nuanced client situations. The industry needs to respond to that complexity with higher standards, not just higher volumes,” he said.
[Related: How do aggregators track broker compliance?]
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