Can Financial Advisers Receive Finance Referral Fees?

Potentially, but an adviser should check the arrangement against the rules that apply to their practice, including their AFSL/licensee policies, conflicts and disclosure obligations, and the credit-law boundary if consumer credit is involved. The safest partner model keeps the adviser at the introduction layer and the broker responsible for the finance advice.

Quick answer: Potentially, but an adviser should check the arrangement against the rules that apply to their practice, including their AFSL/licensee policies, conflicts and disclosure obligations, and the credit-law boundary if consumer credit is involved. The safest partner model keeps the adviser at the introduction layer and the broker responsible for the finance advice.

A client may need borrowing advice even where the financial adviser does not provide credit assistance.

That creates a natural referral point, but the commercial payment should not blur who is responsible for the finance recommendation.

Keep the roles separate

The adviser can identify that a client wants to explore borrowing and make an introduction.

GPS Finance can then:

  • discuss the finance objectives;
  • collect the borrowing information;
  • assess lender fit;
  • provide required credit disclosures;
  • manage the finance application.

Check the adviser's own framework

A financial adviser should confirm whether the referral arrangement is permitted under their licensee's policies and how the payment must be disclosed or managed as a conflict.

Consumer-credit rules can also matter if the adviser does more than make a simple referral.

Why a broad finance partner can be useful

Client borrowing needs are not limited to home lending.

Depending on the client, GPS can assess:

  • car/personal finance;
  • investment or owner-occupied home lending where available through the relevant channel;
  • business and equipment finance;
  • commercial property;
  • business acquisition and working capital.

The commercial arrangement should be documented before the adviser begins referring clients.

Thinking about adding finance referrals to your practice? GPS Finance works with professional referrers across consumer, vehicle, asset, business and commercial finance. Partner remuneration can be available on eligible settled referrals under an agreed arrangement; the structure varies by product and relationship. [See how the GPS Finance partner model works](https://gpsfinance.com.au/partners?content_origin=financial-adviser-finance-referral-fees&partner_type=financial_adviser&promo=partner_article_cta).

Related referral guides

Sources and verification

KK Neelamraju — Founder, GPS Finance Group

KK is a finance and credit professional with more than 20 years of lending and credit experience.

General information only. Referral, licensing, professional-conduct, tax and disclosure obligations depend on the activity, profession, client and arrangement. This is not legal, tax or accounting advice. Check the requirements that apply to your practice before relying on a referral exemption or accepting remuneration.

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