The regime (previously referred to as breach reporting) — which requires Australian financial services (AFS) licensees and credit licensees to submit notifications about “reportable situations” to ASIC within 30 calendar days — was brought in on 1 October 2021.
This week, ASIC acknowledged concerns with the regime, however stated it is committed to improving the operation.
“We are aware that the regime has led to a number of implementation challenges,” ASIC commissioner Sean Hughes said.
“However, ASIC remains committed to the successful implementation of this regime and we have developed a comprehensive plan of work to ensure that it meets its objectives for ASIC, industry and consumers.”
ASIC has pledged to continue to work with industry on reporting practices adopted by licensees in a vid to further understand issues that are resulting in “unnecessary compliance burden”.
The corporate regulator also said it will engage with Treasury on how the regime meets policy objectives.
“We will be working with stakeholders to find common-sense solutions,” Mr Hughes said.
“ASIC will consider whether enhancements are required to the approved form on the regulatory portal for lodging reports. We will also consider whether further practical guidance should be developed to assist licensees in meeting their obligations.”
ASIC’s first public report on the reportable situations regime is due to be published this October which will outline where significant breaches are occurring, as well as “high-level insights intro trends” observed across the reports lodged by licensees between 1 October 2021 to 30 June 2022.
The news follows the announcement by the federal government this week that it has commenced a review of the ASIC industry funding model (IFM) which commenced in July 2017.
Treasury will lead the review in consultation with ASIC, the Department of Finance and the Department of the Prime Minister and Cabinet.
According to the government, the review will be forward looking and focused on identifying any changes to the IFM that may be required to ensure the settings remain appropriate.
“It is appropriate to review the IFM at this point given it has now been in place for five years, and over this period there has been substantial regulatory and structural changes within industry sectors resulting in increased cost pressures within certain sub‑sectors,” the review’s terms of reference state.
A number of issues fall under the scope of the review, which will each be considered and recommendations made where appropriate.
Just another example of ASIC’s arrogance and incompetence. They were told clearly the breach reporting requirements were inappropriate but they ignored the feedback and implemented them regardless. Imagine what could be achieved if they actually listened to financial planners instead of their own adviser hating echo chamber.
Not acceptable – that’s [b]defective[/b]. I expect permanent bans for everyone involved at ASIC.
Motion seconded…