Insights from the Reportable Situations Regime: Report 775, October 2023

ASIC's recent provides high-level insights into the trends observed in breach reports lodged by Australian Financial Services and Australian Credit licensees ("Licensees") between 1 July 2022 and 30 June 2023.

Key Observations from the Report

• There has been a 43% increase in monthly reporting compared to the previous reporting period, with around 1,403 reports being submitted by Licensees per month.
• ASIC expressed concerns that only 9% of the Licensee population lodged reports, which is much lower than expected. Moreover, 71% of all reports were lodged by only 21 licensees.
• The most common root cause of reportable breaches continues to be staff negligence and/or error (66% of all reports). Other common root causes that were reported to ASIC include policy and process deficiency (8%), system deficiency (6%) and inadequate supervision or lack of staff training (4%).