Stay on top of your compliance obligations

By Categories: RegulationPublished On: 17 November 2023

Stay on top of your compliance obligations and meet operational needs for business success with updates to regulator news we highlighted from across the year.  

Internal dispute resolution data reporting

Lifting your game when customers complain

Financial firms have begun to report IDR data to ASIC under the internal dispute resolution (IDR) data reporting framework. In February 2023 a group of 11 large financial firms reported IDR data to ASIC for the first time, ahead of the remainder of approximately 10,500 financial firms joining the framework from August 2023.

From that point, all relevant financial firms will need to report IDR data to ASIC every six-months on an ongoing basis. ASIC released the final requirements for the IDR data reporting framework in March 2022.

In our view, this looming measure presents AFS and Australian Credit Licensees opportunity to evaluate whether policies and procedures they introduced under RG 271 Internal dispute resolution remain effective and compliant.

ASIC takes editing pen to reportable situations guidance

ASIC has released updated guidance on making notifications under the reportable situations regime (breach reporting). Revisions to RG 78 Breach reporting by AFS licensees and credit licensees include:

  • Clarifying the circumstances in which licensees may group multiple reportable situations into one report to ASIC;
  • New guidance on the information to include when licensees describe a reportable situation; and
  • New guidance for licensees on ASIC’s expectations when licensees are providing updates related to a reported breach.

ASIC acknowledges that there have been implementation challenges with the regime, and trusts that the updated guidance will improve consistency and quality of reporting practices by licensees and better support industry to meet its obligations.

In October 2023, ASIC released its second publication on information lodged under the reportable situations regime, covering the over 16,000 reports made between 1 July 2022 and 30 June 2023. It also announced modifications to the reportable situations regime so that licensees do not have to submit notifications about certain reportable situations from 20 October 2023.

Operational risk management (CPS 230)

APRA moderates pace of CPS 230 rollout

APRA has released an updated timeline for the commencement of new cross-industry Prudential Standard CPS 230 Operational Risk Management, citing stakeholder requests for more time for preparation before the requirements come into effect.

First consulted on in July 2022, the standard is designed to strengthen the management of operational risk in the banking, insurance and superannuation sectors.

Following release of a final version of the standard and draft supporting guidance in mid-2023, the effective date for the new standard is 1 July 2025 with transitional arrangements provided for pre-existing contracts.

Government puts AML/CTF reforms back on the rails

The federal government has placed AML/CTF firmly back on the agenda, having announced public consultation on proposed reforms of Australia’s anti-money laundering and counter-terrorism financing regime.

Addressing measures recommended by the 2016 Statutory Review, the Attorney-General’s Department is intending to:

  • Simplify and modernise the operation of the regime, including making the AML/CTF Rules easier for regulated entities to follow
  • Implement long-awaited extension of the AML/CTF regime to certain high-risk professions, including lawyers, accountants, trust and company service providers, real estate agents, and dealers in precious metals and stones (Tranche 2)

There is currently a sense of urgency around amending Australia’s AML/CTF regime, with the country lagging global peers in several areas and international standard-setting body FATF set to conduct its next Mutual Valuation of Australia in 2025.

Release of a second consultation paper, informed by industry submissions on this first paper, is imminent.

We’re here to help; if there is any training that you or your team needs, feel free to reach out and we will be happy to assist.