The Financial Planning Association of Australia The Financial Planning Association of Australia

Reference checking and information sharing

The ASIC referencing checking protocols commenced 1 October 2021 and apply when employing or authorising financial planners (and mortgage brokers).

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.