The regulator invited stakeholders to provide feedback on the proposed relief measures by 11 March
ASIC has proposed additional relief measures to ease compliance obligations for financial services and credit licensees under the reportable situations regime.
The initiative aims to reduce the reporting burden while ensuring ASIC continues to receive reports that provide significant regulatory value.
ASIC’s proposal would grant relief from reporting certain breaches of misleading and deceptive conduct provisions and specific civil penalty contraventions if they meet strict conditions. A breach would not need to be reported if it is rectified within 30 days of occurrence, including any necessary remediation. The exemption would also apply if no more than five consumers are impacted and if the total financial loss or damage does not exceed $500, even if remediation has been provided. However, breaches involving client money reporting rules and clearing and settlement rules would remain reportable.
The regulator emphasised that licensees must continue to maintain systems to identify, investigate, and rectify breaches. The proposed relief does not remove these obligations but seeks to minimise the need for reporting low-impact incidents that have already been promptly resolved.
ASIC has invited industry stakeholders to provide feedback on the proposed relief measures by 11 March.
The reportable situations regime, introduced in October 2021, requires financial services and credit licensees to promptly detect, address, and report potential misconduct. Its objective is to improve industry standards, enhance consumer protection, and provide ASIC with critical regulatory intelligence.
Since the regime’s introduction, ASIC has worked to strengthen its implementation. In April 2023, it released updated guidance in response to operational issues raised by licensees. In September 2024, the regulator extended relief from reporting certain misleading and deceptive conduct breaches. In December 2024, ASIC published findings from a review into compliance with the regime, offering recommendations to help licensees improve their reporting practices.
ASIC’s latest proposal is part of an ongoing effort to refine the regulatory framework while maintaining consumer protections and industry accountability. The regulator will review industry feedback before finalising any changes to the reporting obligations.
