ASIC insights from the breach reportable situations regime

ASIC has released its review of over 16,000 reports made to ASIC by financial services and credit licensees under the breach reportable situations regime between 1 July 2022 and 30 June 2023.

ASIC has observed that although the regime commenced in October 2021:

  • the proportion of the licensee population reporting remains very low (9%), indicating that some licensees may not be complying with the regime
  • licensees are still taking too long to identify and investigate some breaches
  • a significant number of remediation activities are still taking too long to complete, and
  • there remain opportunities to improve identification and reporting root causes of breaches.

Key data includes:

  • As at 30 June 2023 there were 6,311 AFS Licensees and 4,665 credit licensees a total of 10,976.
  • 16,836 reports were submitted during the period by 9% of the licensee population.
  • 71% of all reports were lodged by just 21 licensees. These were generally larger licensees.
  • 32% of reports were about credit product lines, and 28% were about general insurance (28%).
  • 44% of reports were about issues of false or misleading statements, followed by general licensee obligations (18%) and lending (17%).
  • 66% of reports specified a root cause of staff negligence and/or error.
  • In 17% of the reports received, it took the licensee more than one year to identify and commence an investigation into an issue after it had first occurred.
  • Licensees indicated in 247 reports (8% of the total reports involving compensation to customers) that it had taken, or was estimated to take, more than one year to finalise compensation.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

Print Friendly, PDF & Email

Your Compliance Support Plan

We understand you need a cost-effective way to keep up to date with regulatory changes. Talk to us about our fixed price plans.