Well, the inconsistency in reporting practices across the industry might just be a similarity for one!
“ASIC has observed a level of incoherence amongst industry stakeholders in responding to the question of whether any similar reportable situations have occurred. As such it is pertinent that they have returned with some clarification of what it is meant by the term ‘similar’.” – Sempatike Kwizera
In order to address this issue, ASIC has provided some further considerations to assist with making a professional judgement on whether two or more reportable situations are ‘similar’. These include:
🔹 the nature of the issue and/or breach
🔹 the legislative provisions contravened (if applicable)
🔹 the underlying root cause of the reportable situation
🔹 the compliance arrangements or controls involved
🔹 the very nature of any client impact.
How far back in time should licensees go to determine if a similar reportable situation has occurred?
When determining the length of time to look back to, ASIC advises licensees to consider whether there may be a repeat issue or a broader systemic issue. Licensees are able to provide further contextual information in the free-text, ‘Describe the situation’ field.
For more information get in touch with our friendly team at King Irving today.
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