Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023 (69 of 2023)

Schedule 4   Miscellaneous and technical amendments

Part 1   Amendments commencing day after Royal Assent

Division 18   Reference Checking and Information Sharing Protocol

Corporations Act 2001

80   Subsection 912A(3A)

Repeal the subsection, substitute:

Reference Checking and Information Sharing Protocol

(3A) ASIC may, by legislative instrument, determine a protocol for sharing and requesting information about an individual in respect of whom there are reasonable grounds to suspect that:

(a) if the individual becomes a representative of a financial services licensee ( recruiting financial services licensee ), the individual will provide personal advice to retail clients about relevant financial products; or

(b) if the individual becomes a representative of a credit licensee ( recruiting credit licensee ), the individual will:

(i) provide credit assistance in relation to credit contracts secured by mortgages over residential property; and

(ii) be a mortgage broker or a director, employee or agent of a mortgage broker; or

(c) a mortgage intermediary ( prospective mortgage intermediary ) is acting, or will act, as an intermediary in relation to a credit licensee where the individual is, or is a former, current or prospective representative of, that credit licensee, and in that capacity the individual:

(i) provides, provided or will provide credit assistance in relation to credit contracts secured by mortgages over residential property; and

(ii) is, was or will be a mortgage broker or a director, employee or agent of a mortgage broker.

(3AA) The Reference Checking and Information Sharing Protocol may provide for any or all of the following to share information about the individual with the recruiting financial services licensee, the recruiting credit licensee or the prospective mortgage intermediary:

(a) if the individual is a financial services licensee - the individual;

(b) if the individual is a former or current representative of a financial services licensee - that licensee.

(3AB) The Reference Checking and Information Sharing Protocol may provide, in a case covered by paragraph (3A)(a), for the recruiting financial services licensee to request information about the individual from any or all of the following:

(a) if the individual is a financial services licensee or credit licensee - the individual;

(b) if the individual is a former or current representative of a financial services licensee - that financial services licensee;

(c) if the individual is a former or current representative of a credit licensee - that credit licensee;

(d) if a mortgage intermediary has previously acted or is acting as an intermediary in relation to a credit licensee where the individual is, or is a former or current representative of, that credit licensee - that mortgage intermediary.

(3AC) The Reference Checking and Information Sharing Protocol may also provide for keeping and retaining records of information shared, and the circumstances under which that information is shared.