Accountant and Planner Referral Alliances

Key takeaways

• The referrer is protecting their client relationship - your job is to make that safe.
• Accountants care about structure and tax outcomes; planners care about cashflow and risk.
• Close the loop on every referral, including the ones that go nowhere.
• Any payment for referrals must be disclosed and must not turn the referrer into an unlicensed credit adviser.

What does an accountant actually want from a broker?

Not a commission share. What an accountant wants is a broker who does not embarrass them in front of a client they have had for fifteen years.

Concretely: a straight answer on whether the client can borrow, before the client gets excited. Financials handled correctly the first time - add-backs understood, trust distributions read properly, an ATO payment plan disclosed rather than discovered. And a broker who does not tell their client how to structure an entity, because that is the accountant's job and their liability.

Self-employed lending is the natural meeting point. It is the segment where borrowers are most likely to be declined for reasons that have nothing to do with their real capacity, and where the accountant is already involved.

How is a planner relationship different?

Planners work to a documented strategy and a statement of advice. A referral from a planner usually arrives with a purpose already defined - debt recycling, an investment purchase, restructuring for retirement, or an SMSF acquisition.

Notice that none of the "what they need back" answers is a payment. They are all reputational. Referral flow follows reliability far more than it follows money.

What are the rules on referral fees?

Paying for referrals is not prohibited in itself, but three things have to be true and you should confirm all of them with your licensee.

1. Disclosure. Benefits flowing between you and a referrer need to be disclosed to the client in your credit guide and documentation.
2. The referrer must stay a referrer. Under the NCCP framework a person can pass on a client's contact details without a credit licence, but once they start advising on or arranging credit they are engaging in credit activity and need to be licensed or authorised.
3. Best interests duty still binds you. A referral relationship cannot influence which loan you recommend. If a referral arrangement would make it harder to act in your client's best interests, that is the answer.

Get the arrangement documented and reviewed before it starts. This is a routine thing for a licensee to sign off, and an awkward one to unwind after money has moved.

Frequently asked questions

Can a mortgage broker pay an accountant for referrals?

Generally yes, provided the benefit is disclosed to the client, the arrangement is approved by your licensee, and the accountant only refers rather than engaging in credit activity. Confirm the specifics with your licensee and the accountant's own professional body requirements.

Does an accountant need a credit licence to refer clients to me?

Passing on contact details with the client's consent is generally a referral rather than credit activity. Once the accountant suggests particular loans or helps arrange the credit, they may be engaging in credit activity requiring a licence or authorisation. That line is worth getting legal advice on.

How do I start a relationship with an accounting firm?

Solve a live problem for one of their clients, at no charge and without asking for anything. Complex self-employed serviceability is the usual opening because it is where they most often get stuck. Relationships follow demonstrated competence, not a coffee meeting.

How many referral partners does a broker need?

Few, and deep. Three engaged partners who send consistent work outperform twenty who have your card. Depth is a function of how reliably you report back.

Related reading

• Real Estate Agent and Accountant Referral Partnerships
• Self-Employed Home Loans: How Lenders Assess Income
• Low Doc Home Loan Guide for the Self-Employed

Sources

• National Consumer Credit Protection Act - credit activity and referrals — Commonwealth of Australia
• Credit licensing: Responsible lending and best interests duty guidance — ASIC