ASIC has published Report 800 Insights from the reportable situations regime: July 2023 to June 2024.
The publication provides high-level insights into breach reporting trends in reports lodged by financial services and credit licensees from 1 July 2023 to 30 June 2024. The report covers licensee population reporting, breach identification and investigation, root causes, consumer impact and remediation efforts.
During the period, the 10,975 licensees submitted 12,298 reports. Of these, 79% had a financial and/or non-financial impact on customers.
Findings include:
- 31% of reports were about credit product lines (including home loans), followed by general insurance (25%), deposit taking (8%) and superannuation (7% of reports).
- 38% of reports were about false or misleading statements. The next most common issues were related to general licensee obligations (19%) and lending (17%).
- 60% of reports specified a root cause of staff negligence and/or error.
- 28% of customer financial loss reports stated that the breaches were identified from customer complaints.
- Other root causes were stated as: system deficiency, policy or process deficiency, and inadequate supervision or lack of staff training.
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.
Author: David Jacobson
Principal, Bright Corporate Law
Email:
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.
