Licensees must undertake reference checking and information sharing regarding former, current and prospective employees.
The reference checking obligations address from the Banking Royal Commission Recommendations 1.6 (Consumer lending) and 2.7 (professional discipline of financial advisers) and are contained in the .
The obligations are summarised in the ASIC INFO Sheet 257 – ASIC reference sharing protocol, which contains obligations for both the:
- recruiting licensees, and
- referee licensees.
A civil penalty applies for non-compliance with ASIC protocol.
Recruiting licensee - Reasonable steps
Recruiting licensee - Seeking consent from representative
Recruiting licensee - Requesting a reference
Referee licensee - Providing a reference