Licensees would be well aware of their obligation to inform ASIC of a reportable situation within 30 calendar days of having knowledge of the reportable situation (the ‘reporting period’).
But what if your team is conducting an investigation?
The obligation to report only kicks in for investigations which exceed 30 days. On Day 31 after commencing the investigation, Licensees were expected to notify ASIC that an investigation is on foot. The only other time they were also expected to update ASIC was at the conclusion of the investigation.
Following their consultations last year, ASIC have revised their standing on when Licensees should notify them of ongoing investigations.
“ASIC have recognised that a gap exists in AFSL reporting obligations did not adequately account for the progression and duration of ongoing investigations. This gap creates the potential for investigations to remain unchecked for extended periods, as Licensees are not held accountable due to the absence of clear expectations…”
Per the updated guidance to RG78, ASIC now requires Licensees to notify them of the following, in addition to the original reporting requirements above:
- Status update where no other update has been given and 6 months have elapsed.
- Details of material changes to the nature, impact or extent of the reportable situation as soon as reasonably practical.
- You have completed the investigation.
- You have completed the rectification of the investigation.
- You have completed the consumer remediation process.
“…ASIC has a regulatory interest in keeping abreast of any changes to the status, progress and conclusion of potential and actual breaches. The new guidance will allow the regime to further safeguard the best interests of customers and promote the commitment to transparency and accountability within the financial sector.” – Neda Khademazad.
What are your thoughts on the new reporting obligations?