In the lead up to the appearance of the CEO’s of the four major banks before the House of Representatives Standing Committee on Economics next week the Australian Bankers’ Association has published a Reference Checking & Information Sharing Protocol to improve reference checking during the recruitment of financial advisers by member banks.

The Protocol is intended to promote better information sharing about the performance history of financial advisers focusing on compliance, risk management and advice quality.

The protocol sets minimum standards for checking references and sharing information, through a series of standardised questions and record keeping practices.

The Protocol commences from 1 March 2017, unless otherwise implemented earlier by members.

Member banks should maintain records that enable them to demonstrate that they have met the requirements of the Protocol. These records must be maintained for a period that is in line with their
internal record keeping requirements.