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Reforms gives ASIC greater visibility

Friday 13 August 2021

Chair of the securities and investments regulator had said that 6 reforms form the royal commission will mean fairer system for the customers   and stronger financial system. 

The Australian Securities and Investments Commission (ASIC) said that the new laws the including the design distribution obligations, hawking provisions, and the deferred sales model for add-on insurance. 

ASIC chair Joe Longo said in an official statement, “While these reforms have been in the pipeline for some time, ASIC recognises they require significant changes to businesses’ systems and processes and take effect at the same time industry is facing other challenges, including from COVID-19 and renewed lockdowns.”

Longo said that the regulator will consider the context the of the regulated entities, but these changes will allow the regulator greater visibility on ‘issues in the marketplace’.

The ASIC chair said, “ASIC’s initial approach extends to technical or inadvertent breaches, where firms have systems changes underway and act quickly to address problems as they arise.

However, where firms are not acting in good faith or where we detect conduct causing actual harm, we will not hesitate to enforce the law.”
Official dates of commencement of the provisions:

Reference Checking and Information sharing requirements 1 October 2021
Breach Reporting and the ‘notify, investigate and remediate’ obligations 1 October 2021
Design and distributions obligations 5 October 2021
Hawking 5 October 2021
Deferred Sales Model for add-on insurance products 5 October 2021
Internal dispute resolution 5 October 2021