Under new data reporting requirements, between 1 January and 29 February 2024, over 8,600 financial firms were due to report internal dispute resolution (IDR) data to the Australian Securities and Investments Commission (ASIC) for the first time.
Following concerns over the ability of firms to meet the deadline, ASIC extended the submission window to 14 March, noting that it is the first time most firms are engaging with the new reporting process.
According to ASIC, 87 per cent of financial firms successfully submitted an IDR report to ASIC between 1 January and 14 March 2024.
“The high level of compliance with this new requirement is encouraging,” ASIC said.
“Firms are reminded of the need to meet this reporting requirement twice per year. ASIC will continue to engage with firms on meeting this requirement.”
In early 2023, the first group of 97 large financial firms, including banks and some superannuation funds, commenced reporting their IDR data to ASIC.
By August 2023, a second group of around 340 financial firms commenced their IDR reports for the first time.
ASIC said that the firms in these first two groups account for many of the largest financial firms and are likely to account for well over 60 per cent of consumer and small business complaints made.
This submission window saw the remaining financial firms, including many smaller firms, commence reporting their IDR data to ASIC.
The regulator said it would analyse the data to “inform our approach to publication and we will communicate our approach in advance of publication”.
Financial firms must report to ASIC even if there have been no complaints during a reporting period. Failing to submit a report even if it’s a “nil submission”, indicating no complaints, puts a firm at risk of breaching IDR reporting regulations and may lead to severe penalties.
“The framework is a culmination of detailed consultation with industry to improve and standardise the quality of IDR data. Collection of IDR data will improve ASIC’s capabilities as a data-driven regulator. This data will give greater visibility of where consumers experience problems or where harms may be occurring within firms,” said ASIC deputy chair Karen Chester in May last year.
“It will be an invaluable resource for ASIC, industry, consumer groups, and ultimately, consumers themselves.”
Moving forward, the deadline to provide ASIC with IDR data through ASIC’s Regulatory Portal is within two months of the end of each six-month reporting period.
