State Of Play: ASIC Gives Breach Reporting Relief

ASIC has registered the ASIC Corporations and Credit (Amendment) Instrument 2023/589 (Instrument), which provides welcome relief in relation to the ASIC breach reporting regime for Australian financial services licensees.

The Instrument commences on 20 October 2023.

The Instrument provides relief from the original position that a contravention of the misleading or deceptive conduct provisions are automatically reportable, even if the the conduct was not adverse to the client or capable of resulting in client loss or harm. This aspect of the expanded breach reporting regime was the source of considerable confusion and resource strain across the industry, with no clearly identifiable consumer or regulatory benefit – and so, ASIC's relief provides a sensible and pragmatic development to the regime.