Background
The current reportable situations regime originally came into effect on 1 October 2021, requiring licensees of Australian financial services (AFS) licences and Australian credit licences to self-report breaches and likely significant breaches of core obligations, investigations into potential breaches, occurrence of serious fraud or gross negligence to ASIC.
Separately, the IDR regime came into effect on 5 October 2021, requiring AFS and credit licensees to record all complaints received from consumers. From 1 January 2024, licensees have been required to report IDR data to ASIC on a six-monthly basis. The purpose of this regime is to provide fair, timely and effective dispute resolution as a method of ensuring adequate consumer protection.
Publication of data
The Consultation Paper outlines ASIC's proposal to publish the RS and IDR data on interactive dashboards for download by users with the purposes of enabling greater understanding and interpretation of the data to ensure its consistency with the data reporting obligations. The interactive dashboards are also intended to provide users with a more accessible method of viewing and interpreting the data to further drive their own informed decision making.
Specifically, the published RS data will include the data reported to both ASIC and APRA in relation to:
- Significant breaches of core obligations
- Inability of a licensee to comply with a core obligation, which is likely to lead to a significant breach
ASIC does not intend on publishing information in relation to ongoing investigations of significant breaches and likely significant breaches, additional reportable situations involving gross negligence or serious fraud, or reportable situations relating to other unrelated licensees.
All IDR data will be aggregated at a firm level, including the number of complaints, number of days taken to resolve the complaint, and monetary remedies, in relation to different financial firms, and each of their respective financial products. Due to privacy concerns, ASIC may refrain from publishing data in relation to complainant demographics, and whether complaints are in relation to authorised representatives of AFS licensees. ASIC will not publish the names, licence numbers or general data of licensees who are individuals. ASIC initially published IDR data in December 2024. However, this was only presented at an industry level.
It is important to note that when publishing the RS and IDR data, ASIC will be publishing the names and licence numbers of the financial firms. However, information in relation to individual AFS licensees will not be made public.
Explanatory guidance
ASIC has also proposed publishing explanatory information to assist users in understanding and interpreting the RS and IDR data, and to avoid making unfair comparisons and misinterpreting the data. This explanatory information is likely to include:
- A glossary with definitions and explanations
- Descriptions of the scope of data publication
- Contextual statements in relation to the indications that can, or cannot, be derived from the data
Purpose of reformed approach
The Consultation paper highlights that the publication of RS and IDR data reporting is ASIC's way of:
- Enhancing accountability and transparency in relation to the handling of complaints, and the management of breaches, by AFS and credit licensees
- Providing an incentive for improved behaviour across the industry
- Improve understanding of business areas within which significant breaches and IDR complaints are occurring
- Enable firms to improve their compliance outcomes and consumer outcomes
Next steps
ASIC has provided stakeholders until 14 May 2025 to provide feedback and responses to their various questions presented in the Consultation Paper.
