Industry expert calls for structured model to close the gap between qualification and competency
A senior finance broker has called for new-to-industry mortgage brokers to undergo a mandatory three-year mentorship before operating independently or managing client relationships.
Sergio Stefano (pictured top), president of the Finance Brokers Association of Australia's South Australian and Northern Territory branch, said industry bodies, aggregators, and training organisations must take greater responsibility for developing broker capability.
"As lending becomes more complex, we need to ask ourselves…are brokers educated enough?" said Stefano, who is also the chief executive and head broker at Adelaide-based Brokerage & Co.
"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. They deserve better than a broker who is still figuring things out at their expense."
Stefano argued that new-to-industry brokers should be required to complete a genuine three-year mentorship — not a tick-the-box programme — before operating independently.
What they need, he said, are "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 judgment that only comes with time and guidance."
Stefano also noted that brokers entering the industry from a banking background may require only one year of mentoring, given their existing technical knowledge. "The knowledge is there, but brokering is a different discipline," he said. "The client relationship is different, the responsibility is different, and the commercial reality is very different."
He acknowledged that the industry already has education requirements in place, but argued there remains a significant gap between completing a course and being ready to run a business and manage clients' financial affairs. "That gap is where mistakes happen," Stefano said. "That gap is where trust gets broken.
"This is where existing institutions must step up and uphold higher education standards as they play a critical role in shaping broker capability.
Stefano said brokers holding their own Australian Credit Licence are already stretched across compliance, business operations, and client demands, leaving them without the capacity to design and enforce robust education frameworks independently. He added that responsibility for delivering consistent, practical, and ongoing education should rest with the institutions that support the industry.
"Lending is only getting more complex, more products, more regulation, more nuanced client situations," he stressed. "The industry needs to respond to that complexity with higher standards, not just higher volumes."
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