Consultation Sought on Compulsory Adviser Reference Checks


ASIC is seeking adviser and licensee feedback on the introduction of reference checking and information sharing protocols for financial advisers and mortgage brokers.

In releasing its consultation paper, the regulator noted compulsory reference checks for advisers and brokers was a recommendation of the Financial Services Royal Commission, which found licensees were not doing enough when it came to background checks on prospective employees.

The Government agreed and introduced the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 into Parliament. It includes references to the extent that AFS licensees and Australian Credit licensees should comply with an ASIC reference checking and information sharing protocol.

ASIC is now consulting on both the draft ASIC Protocol and the accompanying information sheet through Consultation Paper 333. The consultation period ends on 29 January 2021.