Reportable situations (previously breach reporting)
From 1 October 2021, Australian financial services (AFS) licensees and Australian credit licensees are required to submit notifications about ‘reportable situations’ (previously breach reports) to ASIC within 30 calendar days (no longer 10 days) via the ASIC Regulatory Portal generally.
The types of reportable situations that must be reported include:
- significant breaches or likely significant breaches of ‘core obligations’;
- investigations into whether there is a significant breach or likely breach of a ‘core obligation’ if the investigation continues for more than 30 days;
- the outcome of such an investigation if it discloses there is no significant breach or likely breach of a core obligation;
- conduct that constitutes gross negligence or serious fraud; and
- conduct of financial advisers and mortgage brokers who are representatives of other licensees in certain prescribed circumstances.
Note: For AFS licensees, the breach reporting framework in s912D of the Corporations Act (as in force immediately before 1 October 2021) continues to apply with respect to the reporting of certain breaches, as set out in s1671A of the Corporations Act.
Regulatory Guide 78 Breach reporting by AFS licensees and credit licensees (RG 78) provides further guidance as to what licensees must report to ASIC and when.
Notify, investigate and remediate obligations
AFS and credit licensees must also notify affected clients of certain breaches of the law, investigate those breaches and remediate customers within prescribed time frames see Information Sheet 259: Complying with the notify, investigate and remediate obligations (INFO 259).
For more information see:
