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Current Consultation

Self reporting of contraventions by financial services and credit licensees

The self-reporting regime for Australian Financial Services licensees (AFS licensees) has come under scrutiny over the last decade or so in the media and in a series of inquiries into banking or banking and financial services related misconduct. Concurrently, ASIC has publicly outlined concerns with the effectiveness of some aspects of the existing regime.

The Taskforce has conducted preliminary analysis of these issues, with the benefit of ongoing targeted consultation with industry and other stakeholders. This has enabled the Taskforce to develop preliminary positions on a set of reforms aimed at enhancing the current regime and making it more effective.

The paper poses reforms that would:

  • clarify when the reporting obligation is triggered - reducing compliance costs and delays in reporting, and removing uncertainty about when and whether a reporting obligation exists in the circumstances;
  • increase accountability for licensees, and their employees and representatives by expanding the class of reports that must be made to expressly include misconduct by individual advisers and employees;
  • introduce new and heightened penalties for non-reporting, giving ASIC greater flexibility to impose a range of penalties in response to a failure to report;
  • require ASIC to publish data on breach reports for major licensees; and
  • introduce an equivalent reporting regime for credit licensees (who are currently subject only to annual compliance reporting).

The taskforce invites all interested parties to make a submission on the positions outlined in this paper.

Making a Submission

Interested parties are invited to comment on the consultation paper.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 12 May 2017

Address written submissions to:

ASIC Enforcement Review
Financial System Division
The Treasury
Langton Crescent

For enquiries please call Mr Jerome Davidson +61 2 6263 3968.

Key Documents

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