Effective self-regulation founded on strong education standards avoids the need for NCCP-style lending restrictions, argues CAFBA's David Bushby
Commercial finance in Australia is experiencing a period of rapid change, with many new lenders and a surge of brokers diversifying into commercial broking.
Focused exclusively on commercial and asset finance, it is clear that the work the Commercial and Asset Finance Brokers Association of Australia does has never been more important.
All CAFBA’s directors are active, customer-facing brokers, so CAFBA knows first-hand the current challenges and opportunities. To be able to navigate through this change, it’s important that participants are professional and working in a regulatory environment that fosters excellence and enables integrity and innovation.
CAFBA seeks to shape and maintain the highest standards of knowledge, ethics and professionalism in commercial broking, so that our industry continues to thrive responsively under a self-regulating framework and business borrowers can innovate and invest without the impediment of NCCP-style lending restrictions.
So, what distinguishes good commercial brokers, what sets them apart and attests to their professionalism, knowledge, experience and capability? The answer is the standards created, set and enforced by CAFBA on its members – and, by extension, against which all participants in the sector will be judged.
CAFBA has the clear objective of demonstrating that commercial finance in Australia is so effectively self-regulated that it completely negates any argument for government to step in. CAFBA maintains that a self-regulating framework, founded upon education, ensures the best outcomes for commercial borrowers.
The MFAA report The Value of Mortgage and Finance Broking 2025 contains a lot of valuable information, including that 75% of all new residential loans are now arranged through brokers. The current state of commercial and asset finance broking is less clear, although research by East & Partners in 2020 concluded that 72% of new commercial equipment finance is sourced through commercial brokers (up from 64% in 2017).
Due to its specialist nature, there are far fewer commercial and asset finance brokers than those working in the resi finance market. And this is where the opportunity arises for resi brokers seeking to grow their business into the commercial space.
The skill set and experience required to work in business finance differs from that gained through consumer finance. Accordingly, CAFBA works with potential new commercial and asset finance brokers to offer a clear educational pathway to the knowledge they need.
Effective, standardised education is a requirement for CAFBA membership. CAFBA offers this through our industry-leading digital education platform PACE (Professional Attainment Centre of Education) and the recently launched PACE Premium. PACE provides a structured educational pathway for all commercial brokers, whether they are new entrants, diversifying resi brokers or seasoned professionals.
Its accredited courses cover key aspects of commercial and asset finance, including lending practices, risk management, compliance and customer service. They include short courses, as well as our RTO-delivered Certificate IV and diploma-level courses, the only available formal courses specifically focused on commercial and asset finance.
PACE Premium takes this to a new level and delivers online courses through engaging, continuously updated educational modules designed specifically to help industry participants stay ahead. The modules cover a broad spectrum of topics, from technical skills and regulatory updates to leadership strategies, ensuring that every user finds content that is both relevant and insightful.
Seasoned finance professionals can also be awarded our Diploma of Financial Services based on recognition of prior learning, and our Bridging Diploma of Financial Services provides academic credit in recognition of skills acquired by a mortgage broker.
CAFBA’s pursuit of certification under the Professional Standards Scheme (PSS) means that CAFBA commercial brokers will be recognised as professionals and CAFBA will effectively self-regulate its own members. The PSS will bind CAFBA to monitor, enforce and improve the professional standards of its members, and protect consumers.
Delivering on professional standards is only part of the work CAFBA does. Ensuring regulators are aware of those standards is also necessary. Through its highly recognised and effective advocacy work, CAFBA works towards a regulatory environment conducive to growth, innovation and fair competition.
By actively setting and maintaining standards, self-regulating, participating in consultations and providing expert insights, CAFBA ensures that commercial and asset finance brokers operate in a flexible, professional and fair environment that delivers the best outcomes for their clients.
David Bushby was appointed chief executive of CAFBA in October 2023. Prior to that, he enjoyed a career in law, politics and as a senior diplomat.
