ASIC proposes further relief for licensees under reportable situations regime

The Australian Securities and Investments Commission (ASIC) has proposed additional relief measures to help Australian financial services and credit licensees comply with the reportable situations regime. This initiative aims to reduce the reporting burden on the industry while ensuring that ASIC continues to receive high-value regulatory reports. 

ASIC's proposal includes relief from reporting certain breaches of misleading and deceptive conduct provisions and specific civil penalties, provided the breaches are rectified within 30 days, impact no more than five consumers, and result in financial losses of no more than $500. These breaches must not involve client money reporting rules or clearing and settlement rules. 

ASIC is inviting feedback on these proposals until 11 March 2025. The final changes are expected to be incorporated into ASIC's prudential framework in the second half of the year. 

AFIA is now in the process of developing a submission to this consultation and is seeking feedback from members by Monday 3 March 2025. Members may direct feedback to Policy Director Li Chang at li.chang@afia.asn.au.