Who must comply with Mortgage broker best interests duty?
The applicability test for Mortgage broker best interests duty (ASIC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if you are a mortgage broker. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
Brokers must act in the consumer's best interests when providing credit assistance.
Section 158LA of the NCCP Act imposes a best interests duty on mortgage brokers. Brokers must act in the consumer's best interests and prioritise the consumer's interests if there is a conflict. ASIC's RG 273 gives guidance — conduct an appropriate range of comparisons, document the reasons for the recommendation, and price-prefer the consumer unless clearly outweighed by other factors.
The applicability test
Applies only if you are a mortgage broker. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Mortgage brokers and brokerage businesses.
What triggers it: Providing credit assistance for a credit contract or related insurance.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (2 of 35: only if a further fact applies; 33 of 35: no).
| Industry | Answer |
|---|---|
| Banks & ADIs | Only if a further fact applies |
| Credit licensees & mortgage brokers | Only if a further fact applies |
| No | 33 other industries |
Business structure and size
Structure does not change the answer in the 2 industries it can reach: for every structure the answer is "only if a further fact applies".
Size does not change the answer in the 2 industries it can reach: at every size band the answer is "only if a further fact applies".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
- Pty Ltd company in banks & adis with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you are a mortgage broker.
Answers that bring it into scope
Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:
- The business holds an Australian credit licence (ACL): it becomes worth checking, because it applies only if you are a mortgage broker.
- The business provides credit to customers: it becomes worth checking, because it applies only if you are a mortgage broker.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has credit activity. It then applies only if you are a mortgage broker. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Each consumer interaction.
- Frequency
- Ongoing
- Evidence to keep
- Documented loan comparison, recommendation rationale, file notes addressing consumer's objectives and circumstances.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Civil penalties up to $18.2M / 3× benefit / 10% turnover (corporations); consumer remedies.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Enforcement examples
Where it sits in the corpus
Rules Mate tracks 8 published obligations tagged "credit", 5 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Securities and Investments Commission.
ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).
NCCP Act: Federal regulation of consumer credit.
Free tools that help with this obligation:
Questions
- Who must comply with Mortgage broker best interests duty?
- Applies only if you are a mortgage broker. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Does Mortgage broker best interests duty apply to sole traders?
- Only if a further fact applies. Looking in the 2 industries it can reach and every size band, the engine's answer for a sole trader is: only if a further fact applies.
- Does Mortgage broker best interests duty apply to businesses with 1–5 employees?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "Mortgage broker best interests duty" due?
- Each consumer interaction.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.