ASIC has released its first publication of data reported under the internal dispute resolution (IDR) data reporting framework for financial services licensees and credit licensees for the period 1 July 2023 to 30 June 2024. Background.
Under the IDR framework, licensed financial firms are required to self-report IDR data to ASIC on a six-monthly basis.
Examples of IDR reporting issues ASIC has observed include:
- large variations in the volume of complaints reported by comparable firms;
- overuse of ’other’ rather than a specific category;
- gaps in reported complaint products or issues where those products or issues are central to a
firm’s business; - reporting of data that appears unrelated to a firm’s business;
- overuse of ’unknown’ for the amount of a monetary remedy;
- most complaints data being reported with only one product, issue or outcome represented,
rather than using the multiple fields available; and - high number of firms declaring no complaints to report.
The categories of complaints cover banking and finance, general insurance, life insurance, Investments and advice, superannuation, and traditional trustee services.
Key observations from the over 4.7 million complaints reported by financial firms of all types for the period include:
- General insurance products were subject to the most complaints (33% of all complaints), followed by credit products (22%) and deposit-taking products (15%);
- most complaints were about service (45%), followed by charges (22%) and transactions (11%);
- most outcomes involved an explanation or apology only, or no remedy (43%), followed by a service-based remedy (39%) and a monetary remedy (13%);
- over three-quarters of all complaints were resolved within one day; and
- 623,555 complaints resulted in a monetary remedy, collectively totalling over $375 million.
ASIC will publish data on specific financial firms (firm-level data) in 2025.
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.
