Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (135 of 2020)

Schedule 10   Reference Checking and Information Sharing Protocol

Corporations Act 2001

5   After subsection 912A(3)

Insert:

Reference Checking and Information Sharing Protocol

(3A) ASIC may, by legislative instrument, determine a protocol for:

(a) sharing information about any or all of the following:

(i) a financial services licensee who is an individual;

(ii) individuals who are former, current or prospective representatives of a financial services licensee;

by that licensee with another financial services licensee; and

(b) sharing information about any or all of the following:

(i) a financial services licensee who is an individual;

(ii) individuals who are former, current or prospective representatives of a financial services licensee;

by that licensee with a licensee within the meaning of the National Consumer Credit Protection Act 2009; and

(c) keeping and retaining records of information shared, and the circumstances under which the information is shared.

(3B) The Reference Checking and Information Sharing Protocol must not:

(a) require or permit personal information (within the meaning of the Privacy Act 1988) to be shared, other than with the consent of the individual to whom the information relates; or

(b) require information to be shared in relation to conduct that occurred more than 5 years before the information is shared.

Application of Reference Checking and Information Sharing Protocol

(3C) The Reference Checking and Information Sharing Protocol applies to an individual mentioned in subparagraph (3A)(a)(i) or (ii) if there are reasonable grounds to suspect that the individual will provide personal advice to retail clients about relevant financial products if the individual becomes a representative of the other financial services licensee mentioned in paragraph (3A)(a).

(3D) The Reference Checking and Information Sharing Protocol applies to an individual mentioned in subparagraph (3A)(b)(i) or (ii) if there are reasonable grounds to suspect that, if the individual becomes a representative of the licensee mentioned in paragraph (3A)(b), the individual will:

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

(b) be a mortgage broker or a director, employee or agent of a mortgage broker.

(3E) Expressions used in subsection (3D) that are also used in the National Consumer Credit Protection Act 2009 (other than Reference Checking and Information Sharing Protocol) have the same meaning in that subsection as they have in that Act.

Qualified privilege

(3F) A person has qualified privilege in relation to information shared in accordance with the Reference Checking and Information Sharing Protocol about an individual to whom the Protocol applies.

(3G) A person who has qualified privilege under subsection (3F) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.