The Australian Securities and Investments Commission (ASIC) has issued updated guidance for Australian financial services (AFS) licensees and credit licensees on the reportable situations regime (formerly referred to as breach reporting), which has resulted in a number of implementation challenges since it began in October 2021.
The regulator explained that it has now clarified aspects of its existing guidance and provided new guidance in response to “operational issues” that have arisen under the regime.
“Our focus is to improve consistency and quality of reporting practices by licensees and reduce regulatory burden where we can,” said ASIC executive director (acting), financial services and wealth, Suneeta Sidhu.
“The improved guidance will support industry to meet their obligations and support the regime to meet its policy objectives for ASIC, industry and consumers.”
ASIC said that the updated guidance aims to support the use of data for regulatory purposes and public reporting, and to reduce regulatory burden on the industry where possible.
The updates include a clarification of the circumstances in which licensees may group multiple reportable situations into one report to the regulator.
Additionally, new guidance has been provided on the information that licensees need to include when describing a reportable situation and on ASIC’s expectations when licensees are providing updates related to a reported breach.
Minor changes have also been made to the prescribed form for lodging reportable situations, clarifying how questions should be answered and pointing licensees to the regulator’s guidance.
ASIC noted that the updates follow analysis of the reports received and come in response to direct feedback from industry and other stakeholders to clarify the requirements for licensees.
This included targeted consultation with consideration for feedback from a variety of industry associations in the banking, insurance, super, financial advice, markets, and credit sectors.
“We acknowledged early on that there were some implementation challenges with the regime. Our updated guidance has been developed following consultation with industry on practical solutions to some of these challenges,” Ms Sidhu said.
ASIC added that it would continue to focus on the operation of the reportable situations regime while ensuring that it meets policy objectives for the regulator, industry, and consumers.
“Through our engagement with industry, we are aware of other issues raised regarding the operation of the reportable situations regime,” the regulator said.
“ASIC’s work on these other matters is ongoing, and we expect to undertake further consultation with a range of stakeholders.”
