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Possible Changes in Breach Reporting

Thursday 11 August 2022

This week financial services were reminded of their breach reporting obligations, but also that the obligation may change time. 

“ASIC Commissioner Sean Hughes said in an official statement, ‘We are aware that the regime has led to a number of implementation challenges. 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.”

In an official statement from the regulator it indicated  that breach reporting regime is open to  change and will be reviewed in 2023. 

Almost a year ago financial services faced with a
suite of regulatory changes to prepare for and one of them was the securities and investments regulator approach to breach reporting. 

 Just this week surveillance by ASIC has found some deficiencies in the Superannuation industry’s approach to Internal Dispute Resolution. 

At the release of the then new guidance on Breach Reporting, RG78, Australian Securities and Investment Commission Commissioner the Karen Chester said in an official statement, “The new reporting obligations address long held concerns on the quality and timeliness of breach reporting.

ASIC analysis in 2018 revealed it took more than 4 years (on average) for large financial institutions to identify incidents that proved to be significant breaches. Today’s remediation tally reveals how much consumer harm these delays caused, and ultimately at great cost to those firms.”

Earlier this year
Statewide Superannuation faced a $ 4 million in fines for the misleading the communication and failing to report the breach to the ASIC. 

ASIC commissioner Sean Hughes added, “We will be working with stakeholders to find common-sense solutions. 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.”