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.

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Author: David Jacobson
Principal, Bright Corporate Law
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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.