ASIC has published updated and expanded Regulatory Guide 277 Consumer remediation (RG 277). RG 277 applies to both Australian Financial Services (AFS) licensees (including superannuation trustees) and Australian credit licensees.
It is based on licensees’ legal obligation to operate efficiently, honestly and fairly and it reflects ASIC’s practical experience from monitoring remediations.
RG 277 is comprehensive and allows licensees to scale and tailor their remediations to fit the circumstances.
RG 277 (among other things):
- clarifies the nine principles for conducting a remediation, which will help licensees comply with their obligations and conduct remediations efficiently, honestly and fairly;
- provides 28 examples to assist in the practical application of the guide;
- introduces guidance on the use of assumptions;
- introduces updated product specific guidance on possible monetary and non-monetary remedies;
- updates guidance on the use of a low value compensation threshold and payment channels; and
- introduces guidance on what to do if a consumer cannot be contacted or paid.
RG 277 also helps licensees understand how remediation interacts with other obligations (for example, internal dispute resolution and other general licensing obligations).
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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.
