Corporate watchdog ASIC will focus on improving the operation of the reportable situations regime as one of its priorities for 2022-23.
Under the new regime, which commenced on Oct. 1, AFS and credit licensees must report all reportable situations to ASIC in writing, including significant breaches or likely significant breaches of “core obligations” and conduct that constitutes gross negligence or serious fraud.
ASIC said these reports provide a critical source of intelligence, so it can identify emerging trends of non-compliance in the industry and detect significant non-compliant behaviours early, facilitating prompt regulatory action where appropriate.
“We are aware that the regime has led to a number of implementation challenges,” ASIC Commissioner Sean Hughes said. “However, ASIC remains committed to the successful implementation of this regime and we have developed a comprehensive plan of work to ensure that it meets its objectives for ASIC, industry, and consumers.”
ASIC said it will continue to engage with the industry to further understand any issues that are placing unnecessary compliance burden on industry as well as communicate clear expectations for compliance with the new regime and design solutions to ensure reporting meets the policy objectives of the regime, as well as improve the efficiency of its data collection and analysis.
“We will be working with stakeholders to find common-sense solutions,” Hughes said. “ASIC will consider whether enhancements are required to the approved form on the regulatory portal for lodging reports. We will also consider whether further practical guidance should be developed to assist licensees in meeting their obligations.”
ASIC said it will also continue to engage with Treasury on how the regime is meeting its policy objectives.
ASIC is obliged to publish an annual report of the information provided under the reportable situations regime, with its first public report to be released in October.
