ASIC proposes additional relief for Australian financial services
ASIC introduces additional reliefs
The Australian Securities and Investments Commission (ASIC) is proposing additional relief measures aimed at reducing the regulatory burden on financial services and credit licensees under the reportable situations regime.
In a bid to streamline compliance, ASIC is inviting feedback on its proposal to exempt licensees from reporting certain breaches of misleading and deceptive conduct provisions, as well as specific contraventions of civil penalties.
Proposed relief measures
ASIC introduces additional reliefs aimed at reducing the burden on the industry in the following cases:
- the breach has been remedied within 30 days of its occurrence,
- the number of affected sub-users does not exceed five,
- the total financial loss or damage for all affected customers does not exceed $500 (including cases where the loss has been remediated),
- the violation does not constitute a violation of the rules for reporting client funds, as well as clearing and settlement rules.
Context and industry implications
This initiative represents a measured effort by ASIC to ensure that financial service providers can focus on delivering quality services while maintaining robust compliance systems. Licensees are still required to have comprehensive systems and processes in place to identify, escalate, investigate, rectify, and capture incidents and breaches as part of their general obligations.
ASIC’s proposal does not extend to breaches of the client money reporting rules or clearing and settlement rules, underscoring the regulator’s commitment to maintaining high standards in areas deemed critical for financial stability and consumer protection.
The proposed relief measures are designed to alleviate administrative burdens on financial services firms, enabling them to address minor breaches swiftly without the added pressure of mandatory reporting.
As ASIC opens the consultation period, industry participants are encouraged to provide feedback on the proposal. This move could lead to a more adaptive regulatory framework that balances strict oversight with operational flexibility.
In addition, we reported that the regulator FCA has published warnings on unlicensed brokers.
