ACL holders should:
- be bound by information‑sharing and reporting obligations in respect of mortgage brokers similar to those referred to in Recommendations 2.7 and 2.8 for financial advisers; and
- take the same steps in response to detecting misconduct of a mortgage broker as those referred to in Recommendation 2.9 for financial advisers.
Government Response
The Government agrees to apply information sharing and reporting obligations to Australian Credit Licence (ACL) holders in respect of misconduct by mortgage brokers, including requiring licensees to make whatever inquiries are reasonably necessary to determine the nature and full extent of misconduct, and, where there is sufficient information to suggest that a broker has engaged in misconduct, to inform affected borrowers and remediate those borrowers promptly.
It is essential that where misconduct is identified, the perpetrators of such misconduct are disciplined and prevented from simply avoiding consequences by moving from one licensee to another.