Breach Reporting APIs
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The regulator has provided a platform for financial licensees to submit their situations.
The Australian Securities and Investments Commission (ASIC) provided the reportable situations API in keeping with Regulatory Guide 78 Breach Reporting by AFS licensees and credit licensees.
Having this API will mean that AFSL holders and credit licence holders will not have manually report submit their reportable situations.
The regulator has indicated that they are still working on improving the reportable situation regime:
We are working to improve guidance for licensees on reportable situations to clarify licensee obligations. This work may also lead to minor changes to ASIC’s approved form. These changes and any other subsequent changes to the form may require users of the API to make corresponding changes to their systems.
Breach reporting is one of the reforms that came out of the Royal Commission recommendations.
Reforms passed last October:
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Reference checking and information-sharing requirements
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Breach reporting and ‘notify, investigate and remediate’ obligations
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Design and distribution obligations
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Hawking
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The deferred sales model for add-on insurance products
When the regulator was consulting on the breach reporting obligations the ASIC deputy chair Karen Chester stressed the importance of the obligations:
Breach reporting is a core component of Australia's financial services and credit regulatory framework. The reforms will better position us to act decisively to disrupt misconduct and escalating harms and identify patterns of non-compliance across the industry.
The regulator indicated that they expected a 'significant increase' in the volume of reports from ASIC's Regulated population.
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