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ASIC says burden eased in breach reporting guidance

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The Australian Securities and Investments Commission (ASIC) has released finalised guidance for breach reporting obligations after making some changes resulting from industry feedback.

ASIC says it has incorporated some 15 more working examples into the guidance and has also provided for “batch uploading” of reports that derive from a single cause to reduce the reporting burden for licensees.

“The Government’s new reporting obligations put strong guard rails in place that will benefit firms and consumers alike,” Deputy Chairman Karen Chester said.

“The new obligations will help firms identify and act swiftly on the breaches that matter, making sure they get the attention they deserve.”

The breach reporting requirements, which come into effect on October 1, were made law last December after the Hayne royal commission and findings of a Treasury Enforcement Review Taskforce.

Licensees and boards will have greater confidence they are doing the right thing by consumers, and ultimately their firm and shareholders under the new regime, Ms Chester says.

ASIC says it will take a “reasonable” enforcement approach in the initial stages of the new obligations, provided industry participants are using their best efforts to comply.

The guidance is available here.