What is Breach Reporting?
Breach reporting plays a vital role in the regulation of Australia’s financial services marketplace. Breach reports allow ASIC to detect significant non-compliant behaviours early and take action where appropriate. It also allows ASIC to identify and address emerging trends of non-compliance in the industry.
In 2017, the ASIC Enforcement Review Taskforce sought to test the effectiveness of the breach reporting regime, making a number of recommendations. These included removing the ambiguity surrounding the word ‘significant’ and the timeframe for reporting.
The Financial Services Royal Commission similarly recommended changes to strengthen breach reporting. These recommendations were addressed in the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth). Subsequently, revised obligations relating to breach reporting requirements commenced 1 October 2021
What is RG78?
Regulatory Guide 78 is for Australian financial services (AFS) licensees and Australian credit licensees (credit licensees). It provides guidance on obligations to report to ASIC certain breaches of the law under Div 3 of Pt 7.6 of the Corporations Act 2001 (Corporations Act) and Div 5 of Pt 2-2 of the National Consumer Credit Protection Act 2009 (National Credit Act)
About our course
While it may seem counter-intuitive, for the majority of licensees, breach reporting is not something to be feared. It can help identify gaps in compliance processes, as well as demonstrate a commitment to continuing to act according to the law.
Our online course explores the licensee’s obligation, what constitutes a breach, or likely breach, includes the process of reporting a breach, or likely breach to ASIC and looks at how senior leaders can ensure they lead from the front when it comes to encouraging their organisation’s compliance.
Breach management can also be a valuable tool for ensuring that your organisation’s current policies and procedures are effective and help it to remain compliant with its legislative and regulatory obligations.
What you will learn
- What constitutes a breach, or likely breach, of a licensee’s legislative requirements
- Characteristics that determine whether a breach, or likely breach, is significant
- The process of recording a breach, or likely breach, in organisation records or to ASIC
- How ASIC evaluates reported breaches and how it determines which items to investigate further
- ASIC’s expectations regarding breach management-related conduct
Recognition of Prior Learning
You will be awarded a Certificate of Completion. It will be available online for you to download and print immediately.