ASIC expands reference protocols to mortgage aggregators

ASIC has introduced updates to its reference checking and data sharing protocol, which got here into impact on Aug. 20.

The modifications broaden the protocol to mortgage broking intermediaries (aggregators), enabling them to request and share references on mortgage dealer licensees and their representatives.

This transfer goals to spice up transparency within the mortgage broking trade.

Discretionary reference requests

Whereas the brand new 2024 protocol permits licensees to request references from present or former mortgage aggregators, it doesn’t mandate it.

ASIC has made it clear that “it’s at their discretion whether or not to acquire such references,” however encourages licensees to request references the place it deems mandatory.

This provision provides extra flexibility to mortgage brokers and their intermediaries whereas selling accountability within the trade.

Elevated accountability with new reporting

The 2024 protocol introduces extra inquiries to template consent and reference kinds, together with particular queries about any warnings or reprimands monetary advisers might have obtained from ASIC or the Monetary Companies and Credit score Panel.

These measures purpose to reinforce transparency and accountability in monetary dealings, making certain that representatives with poor observe data are flagged early within the course of.

Transitional interval for compliance

There will probably be a transitional interval till Feb. 28, throughout which licensees can use both the 2021 or 2024 protocol’s consent and reference kinds.

This permits time for trade professionals to adapt to the brand new necessities with out disrupting their operations.

ASIC famous that the brand new protocol is designed to “assist licensees adjust to reference checking necessities underneath the 2024 protocol,” signaling its intent to simplify and streamline compliance throughout the trade.

ASIC steerage for licensees

To assist this transition, ASIC has up to date Info Sheet 257 (INFO 257), offering detailed steerage on easy methods to adjust to the brand new reference checking protocols.

This consists of directions on using template kinds, info sharing, and the significance of thorough reference checks.

Licensees are inspired to familiarise themselves with these updates to make sure they meet the brand new requirements set by the regulatory physique.

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