The Australian Securities and Investments Commission (ASIC) announced on Friday that it has made changes to the implementation timeframe of the internal dispute resolution (IDR) data reporting framework.
The move will mean that thousands of firms that had been due to report IDR data to the regulator for the first time later this year will no longer have to do so until early next year.
Financial firms have been required to record all complaints received and to have an effective system for recording information about complaints since 5 October 2021, in compliance with Regulatory Guide 271 Internal dispute resolution (RG 271).
Earlier this year, an initial group of 97 large financial firms, including banks and some superannuation funds, were required to begin reporting their IDR data to ASIC.
Under the regulator’s original timeline, all remaining financial firms were then expected to join the framework and report IDR data by 31 August 2023. However, ASIC confirmed on Friday that it had further staggered the implementation for the 8,600 reporting firms in total.
Subsequently, a second group of 262 financial firms will now submit their IDR reports for the first time by August this year. ASIC said that the first two groups include many of the largest financial firms and are estimated to account for more than 60 per cent of consumer and small business complaints made at IDR.
Meanwhile, the thousands of remaining financial firms, many of which are smaller firms, will now be required to submit their IDR reports to ASIC for the first time by 29 February 2024.
“We reached a significant milestone early in 2023 when the first group of licensees reported IDR data to ASIC. The staged implementation will see most large financial firms reporting IDR data to ASIC by August 2023,” commented ASIC deputy chair Karen Chester.
“Importantly, those firms account for the large majority of consumer complaints made through IDR. The staged implementation will also allow more time for many smaller firms to prepare for the start of their reporting obligations.”
As part of the changes, ASIC confirmed that it will not publish IDR data until all financial firms have commenced reporting after 29 February next year.
The regulator said that it would be analysing the data to inform its final approach to publication and will communicate its final approach “well in advance of publication”.
“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 Ms Chester.
“It will be an invaluable resource for ASIC, industry, consumer groups, and ultimately consumers themselves.”
