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Updated Remediation Guidance

Friday 30 September 2022

 

Licensees must do better with remediation.

This is the call from the Australian Securities and Investments Commission (ASIC) this week with the publication of an expanded remediation guidance--
RG 277: Consumer Remediation.

ASIC Deputy Chair Karen Chester said in an official statement, “The common stumbling block we have seen across remediations is underinvestment in systems. This underinvestment has led to a trifecta of failures. First and foremost, in delivering on promises to consumers, second in identifying the failures and third in being able to remediate consumer loss in a timely way.” 

The securities and investments commission stated that while $5.6 billion in remediation has been paid there is $1.6 million outstanding. 

The new expanded guidance is a response to requests from industry for clearer guidance. 

The regulator also published an updated version of Making it right: How to run a consumer centered remediation. 

The two updates are intended to encourage more transparency around remediations. 

“To date ASIC has needed to oversee large scale remediations to ensure affected consumers were treated fairly and received the compensation they were entitled to.”