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Reference Checking

Reference checking and due-diligence

In October 2021, reference checking for all advisers and prospective advisers became a licence condition and subject to breach reporting requirements.

In fact, once compliance with ASIC Instrument (2021/429) became mandatory from 1 October 2021, there’s little scope for deviation from the prescribed processes.

Summary:

Compliance with ASIC Instrument (2021/429) is mandatory from 1 October 2021;
Compliance with ASIC Instrument (2021/429) is mandatory from 1 October 2021;
It’s a licence condition and subject to breach reporting requirements;
It’s a licence condition and subject to breach reporting requirements;
Recruiting licensees must request a reference about the prospective representative from the referee licensee(s);
Recruiting licensees must request a reference about the prospective representative from the referee licensee(s);
The referee licensee(s) must then share information with the recruiting licensee about the prospective representative by giving a reference.
The referee licensee(s) must then share information with the recruiting licensee about the prospective representative by giving a reference.
Recruiting Licensees must  seek written consent  from a prospective representative to request a reference and if consent is given –  request a reference  from the referee licensee(s) in accordance with the ASIC protocol.
Recruiting Licensees must seek written consent from a prospective representative to request a reference and if consent is given – request a reference from the referee licensee(s) in accordance with the ASIC protocol.
The referee licensee(s) must then share information with the recruiting licensee about the prospective representative by giving a reference.
The referee licensee(s) must then share information with the recruiting licensee about the prospective representative by giving a reference.

We can help

Effective adviser due-diligence requires discretion, relevant experience and “a very particular set of skills .. acquired over a very long career”.

Thankfully, we have the skills and resources to lift this burden from your shoulders.

POLICE AND CREDIT CHECKS

DIY CHECKING

If you’re comfortable with the requirements and just need a simple way to perform a police check, our association with National Crime Check means that we can offer you a simple and cost effective way to make these checks.

INDEPENDENT CHECKING

If you’d prefer to have the end-to-end process managed by independent experts, our Operations Team can, as your agent, be engaged to make all the required checks, validate and assess the responses and provide you with an opinion on which you can rely.

It’s an effective, and cost-effective, way to secure your business against employment and regulatory risks.

If you’d like to engage us, or simply discuss pricing options, reach out.

ENHANCED DUE-DILIGENCE

Reference checking should be a key component of your compliance arrangements; but it’s only likely to be partially effective in identifying ‘bad apples’ and other advice risks.

A more effective solution is to supplement reference checking with an objective, contextual and risk-based assessment of their advice and advice processes.

Our enhanced due-diligence offering combines independent reference checking with an independent assessment of 4-12 client files to properly identify the risks you’ll assume if you recruit or appoint the adviser.

If you need more information, or have further questions, about our process or the opinion we’ll provide to you, we’re happy to help.

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