ASIC has announced updates to its reference checking and information sharing protocol, which came into effect on Aug. 20.
The changes expand the protocol to mortgage broking intermediaries (aggregators), enabling them to request and share references on mortgage broker licensees and their representatives.
This move aims to boost transparency in the mortgage broking industry.
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While the new 2024 protocol allows licensees to request references from current or former mortgage aggregators, it doesn’t mandate it.
ASIC has made it clear that “it is at their discretion whether to obtain such references,” but encourages licensees to request references where it deems necessary.
This provision offers more flexibility to mortgage brokers and their intermediaries while promoting accountability in the industry.
The 2024 protocol introduces additional questions to template consent and reference forms, including specific queries about any warnings or reprimands financial advisers may have received from ASIC or the Financial Services and Credit Panel.
These measures aim to enhance transparency and accountability in financial dealings, ensuring that representatives with poor track records are flagged early in the process.
There will be a transitional period until Feb. 28, during which licensees can use either the 2021 or 2024 protocol’s consent and reference forms.
This allows time for industry professionals to adapt to the new requirements without disrupting their operations.
ASIC noted that the new protocol is designed to “help licensees comply with reference checking requirements under the 2024 protocol,” signaling its intent to simplify and streamline compliance across the industry.
To support this transition, ASIC has updated Information Sheet 257 (INFO 257), providing detailed guidance on how to comply with the new reference checking protocols.
This includes instructions on the use of template forms, information sharing, and the importance of thorough reference checks.
Licensees are encouraged to familiarise themselves with these updates to ensure they meet the new standards set by the regulatory body.
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