Breach reporting – ASIC Insights

ASIC has released its first report into the reportable situations regime that commenced in October 2021, highlighting some key action items for Australian Financial Services (AFS) and credit licensees.

AFS and credit licensees, both large and small, should ensure:

• There are adequate systems in place to identify breaches and report these internally;
• Their risk and compliance function is adequately resourced to investigate and, where required, report breaches to ASIC;
• All communications with clients accurately represent the products and services the licensee offers and are not misleading or false in substance, or in the impression they give;
• Staff are adequately trained and understand their obligations as an employee of a licensee, especially in relation to breaches and escalating any incidents; and