Financial advisers have raised concerns over the corporate regulator’s plan to publish dashboards containing company-level breach and complaints data.

Financial Advice Association Australia says the publications should not be a “name and shame tool to incentivise good behaviour. This approach will likely just disadvantage firms that are doing the right thing.” 

The Australian Securities and Investments Commission began consultation last month on plans to publish two dashboards detailing reportable breaches and internal dispute resolution in the second half of this year.

ASIC commissioner Alan Kirkland says publication of the company-level data “will encourage firms to lift their game”, and giving consumers and investors access to the data will spur “confident and informed participation” in the financial system. 

But the FAAA’s consultation submission raises a series of concerns.

“In the absence of an example that clearly demonstrates how the data will be presented, it is extremely difficult to appreciate what is being proposed,” the FAAA submission says.  

“The FAAA is concerned that the ... approach is extremely unclear and that in the absence of greater certainty as to what the regulator is proposing, we do not believe the proposal for [the] data publication … is ready for implementation.”

The peak body urges the regulator to consider holding roundtables with industry and potential end users, presenting “mock” publications to seek input. 

The FAAA submission also flags a lack of detail on the cost of producing the dashboards.

“Given the proposed data publication project covers a large percentage of ASIC’s regulated population, and such costs will likely be recovered via ASIC’s industry funding levy, it would be reasonable for the estimated costs of this project to be released as part of the consultation process.

“Any spend on this functionality should be cognisant of the value it will generate for users, and this is not particularly evident to us at this stage.”

See the submission here.