ASIC has updated the 2021 ASIC Corporations and Credit (Reference Checking and Information Sharing Protocol) for financial advisers and mortgage brokers to reflect changes to the Corporations Act and Credit Act made by the Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023 to ensure that aggregators would be appropriately subject to reference checking and information sharing protocols. Background.

The 2024 ASIC Corporations and Credit (Reference Checking and Information Sharing Protocol) Instrument 2024/647 for financial advisers and mortgage brokers commenced on 20 August 2024.

There is a transitional period until 28 February 2025 during which time licensees can request references using template consent and reference forms from the 2021 Protocol or the 2024 Protocol.

The updated protocol is intended to enable mortgage broking intermediaries (i.e. aggregators) to obtain references on mortgage broker licensees and licensees’ representatives.

The 2024 Protocol does not impose obligations on licensees to request these additional references. It is at their discretion whether to obtain such references.

The 2024 Protocol also includes a question on the template consent and reference forms about any warnings or reprimands to financial advisers from ASIC and the Financial Services and Credit Panel.

To help licensees comply with reference checking requirements under the 2024 Protocol, ASIC has updated Information Sheet 257 ASIC reference checking and information sharing protocol (INFO 257).

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Author: David Jacobson
Principal, Bright Corporate Law
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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.