Self-reporting of Contraventions by Financial Services and Credit Licensees

Treasury has released Position and Consultation Paper 1 Self-reporting of contraventions by financial services and credit licensees.

This arose after the self-reporting regime came under scrutiny in the media and in a series of inquiries into banking or banking and financial services related misconduct. Additionally, ASIC has publicly outlined its concerns in relation to the effectiveness of some aspects of the existing regime.

These matters led to the Government’s decision to include the breach reporting regime in the ASIC Enforcement Review Taskforce’s Terms of Reference for review. The Taskforce has conducted a preliminary analysis of the issues and developed preliminary positions on a set of reforms aimed at enhancing the current regime and making it more effective.

We note that the recent review of the External Dispute Resolution framework by Government proposes a breach reporting backdoor that is inconsistent with these proposals.

To request a full summary of the issues identified in relation to the proposal email us a request at [email protected].

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