ASIC has published the ASIC Corporations and Credit (Reference Checking and Information Sharing Protocol) Instrument 2021/429 which prescribes the reference checking and information sharing protocol that apply to financial services licensees and credit licensees in relation to former, current or prospective financial advisers and mortgage brokers.
ASIC has also released Information Sheet 257 ASIC reference checking and information sharing protocol (INFO 257).
From 1 October 2021, Australian financial services licensees and Australian credit licensees will be required to comply with the reference checking and information sharing protocol in relation to financial advisers and mortgage brokers. Background.
The reference checking and information sharing obligation applies to both financial services licensees and credit licensees. This is intended to enable any past misconduct by a person to be ascertained and shared between the financial advice and mortgage broking industries, particularly where the person seeks to move from one industry to the other. It also covers representatives of licensees who have not been a financial adviser or mortgage broker and are seeking to move into these roles.
The Instrument sets out the obligations of ‘recruiting licensee’, ‘referee licensee’, ‘current licensee’, ‘former licensee’ regarding a prosepective representative.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.