What is an Australian Credit Licence (ACL)?
An Australian Credit Licence (ACL) is the mandatory authorisation that permits individuals and businesses to provide credit services, including mortgage broking, under Australian financial services law.
The Australian the team the team is a regulatory authorisation issued by the Australian Securities and Investments Commission (ASIC) to entities that wish to engage in credit activities. For mortgage brokers operating in Sydney and across Australia, holding or operating under an ACL is a legal requirement to arrange home loans, personal loans, and other credit products on behalf of clients.
An ACL specifies the types of credit services a licensee can provide. Mortgage brokers typically hold a licence that authorises them to engage in credit activities such as providing credit assistance and arranging credit contracts. Some brokers operate as credit representatives under a sponsoring licensee's authority rather than holding their own ACL, which means they conduct business under that licence holder's compliance framework.
The licence comes with strict obligations: brokers must comply with responsible lending laws, treat customers fairly, maintain professional indemnity insurance, and follow ASIC's credit licensing requirements. This includes verifying a client's eligibility for a loan and ensuring the credit is not unsuitable for their circumstances. A broker's ACL status is searchable on ASIC's online register, allowing clients to verify legitimacy before engaging their services.
For borrowers in Sydney seeking mortgage broking help, confirming that a broker holds a valid ACL or operates as a credit representative is a basic due-diligence step. You can find licensed mortgage brokers here to compare options.