As part of its 2022-23 priorities, ob体育 will focus on improving the operation of the reportable situations regime.
The new regime, which applies to Australian Financial Services (AFS) Licensees and Credit Licensees, commenced on 1 October 2021.
The lodgement of reports by licensees under the reportable situations regime provides a critical source of intelligence to enable ob体育 to identify emerging trends of non-compliance in the industry. It also allows detection of significant non-compliant behaviours early, facilitating prompt regulatory action where appropriate.
ob体育 Commissioner Sean Hughes said, 鈥榃e are aware that the regime has led to a number of implementation challenges. However ob体育 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 ob体育, industry and consumers.鈥�
Engaging with industry and setting expectations
ob体育 will continue to engage with industry on reporting practices adopted by licensees to further understand any issues that are placing unnecessary compliance burden on industry. ob体育 will communicate clear expectations for compliance with the new regime and design solutions to ensure the consistency and quality of reporting meets the policy objectives of the regime, as well as improve the efficiency of ob体育鈥檚 data collection and analysis.
Mr Hughes added, 鈥榃e will be working with stakeholders to find common-sense solutions. ob体育 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.鈥�
ob体育 will continue to engage with Treasury on how the regime is meeting its policy objectives. In undertaking this work, ob体育 acknowledges the significant investment made across industry in the implementation of the reforms to date and will seek to minimise further impacts.聽 聽
Public reporting
ob体育 is obliged to report annually on information that is provided under the reportable situations regime. Amongst other things, this reporting is intended to assist consumers identify where significant breaches are occurring. ob体育鈥檚 first public report, due to be published in October 2022, will include high-level insights into trends observed across the reports lodged by licensees during the period 1 October 2021 to 30 June 2022.聽
This report will not name licensees nor refer to the nature or number of reports lodged by specific licensees.
Given that ob体育 will not be publishing data or insights at a licensee level in this first report, ob体育 will not consult with stakeholders on the information to be published in this first year of public reporting.
ob体育鈥檚 approach to reporting will evolve over time, as implementation of the regime matures and allows for greater granularity of reporting. ob体育 will consider its approach to the 2023 public report early next year, including whether that report should include a list of all licensees who have reported to ob体育 during the period.聽 ob体育 will consult with stakeholders in advance of the commencement of licensee-level granular public reporting (likely in 2024). 聽聽
Background
Under the regime, AFS and credit licensees must report all reportable situations to ob体育 in writing, including:
- significant breaches or likely significant breaches of 鈥榗ore obligations鈥�
- investigations into whether there is a significant breach or likely breach of a 鈥榗ore obligation鈥� if the investigation continues for more than 30 days
- the outcome of such an investigation if it discloses there is no significant breach or likely breach of a core obligation
- conduct that constitutes gross negligence or serious fraud
- reportable situations about other licensees.
A number of situations are deemed to be significant and therefore reportable (for example, a contravention of a civil penalty provision).
AFS and credit licensees are required to notify ob体育 of reportable situations within 30 calendar days after the licensee first knows that there are reasonable grounds to believe a reportable situation has arisen. For more information see Reportable situations for AFS and credit licensees.