ASIC Consultation Paper 333 – Reference checking and information sharing

This consultation paper seeks feedback on our proposed approach to implementing aspects of the law reform arising from Royal Commission Recommendations 1.6 and 2.7.

These recommendations relate to the reference checking and information sharing protocol for financial advisers and mortgage brokers.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) recommended that:

  • Australian financial services licensees (AFS licensees) should be required to comply with a reference checking and information sharing protocol for financial advisers similar to the Australian Banking Association (ABA) Reference checking and information sharing protocol (ABA protocol) (Recommendation 2.7); and
  • Australian credit licensees (credit licensees) should be bound by information sharing and reporting obligations relating to mortgage brokers similar to those referred to in Recommendation 2.7 for financial advisers (Recommendation 1.6).

To implement these recommendations, the Government has introduced the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 (Bill). If Parliament passes the Bill, ASIC will be given the power to make a legislative instrument to give effect to a reference checking and information sharing protocol for financial advisers and mortgage brokers.

This consultation paper seeks feedback on:

  • ASIC’s proposed legislative instrument which gives effect to the proposed ASIC Reference checking and information sharing protocol (ASIC protocol); and
  • ASIC’s proposed guidance on this protocol through an information sheet.
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