Robust internal systems are the key to identifying and reporting
significant breaches.
Australian Financial Services (AFS) licensees
are obliged to report significant breaches of their obligations in
sections 912A and 912B of the Corporations Act to the Australian
Securities and Investments Commission (ASIC).
Determining whether a breach is "significant" requires
careful analysis by AFS licensees. In this article we take a closer
look at the relevant provisions of the Corporations Act to help you
identify significant breaches, and understand your reporting
obligations.
What is a "significant" breach?
Whether a breach is significant will depend upon the individual
circumstances of the case at hand. A review of the breach must be
performed to determine whether a breach or a likely breach is
significant and, therefore, reportable to ASIC. Typically, legal
and risk compliance functions within an organisation can assist the
business with this review.
