ASIC has published the results of its review of the compliance arrangements of 14 licensees of different sectors and sizes who had low numbers of reportable breach situations, or had not reported at all.
The review looked at:
- the reportable situations these licensees had submitted between October 2021 and June 2024;
- their incident registers over a three-month period in 2023; and
- their measures for complying with the regime.
ASIC said the review revealed a number of poor practices among licensees:
- Licensees were generally slow to report to ASIC. The key driver of these delays was that licensees took a long time to identify breaches in the first place and begin investigating.
- When ASIC reviewed why this was happening, ASIC found that there were deficiencies in licensees’ incident management, particularly how they identified, escalated and recorded incidents.
- Most licensees had gaps in how they monitored their own compliance with the regime.
- The failures to promptly identify breaches meant that licensees were very slow to rectify breaches and remediate customers.
The review suggests better practices, particularly in respect of assessing complaints for incidents and breaches and recording, escalating or acting on incidents and breaches.
ASIC says it is seeking compliance outcomes to address deficiencies from the licensees in the review. It says it will take enforcement action where appropriate.
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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.
