Breach Reporting Introduction
If you are an Australian financial services (AFS) licensee or an Australian credit licensee (credit licensee), you must comply with your obligation to report certain breaches of the law to ASIC.
What you must report to ASIC
As a licensee, you must report to ASIC a range of conduct that the law describes as ‘reportable situations’. The types of reportable situations that you must report include:
- significant breaches or likely significant breaches of ‘core obligations’;
- investigations into whether there is a significant breach or likely breach of a ‘core obligation’ if the investigation continues for more than 30 days;
- the outcome of such an investigation if it discloses there is no significant breach or likely breach of a core obligation;
- conduct that constitutes gross negligence or serious fraud; and
- conduct of financial advisers and mortgage brokers who are representatives of other licensees in certain prescribed circumstances.
When and how you must report to ASIC
As a licensee, you must tell ASIC in writing, within 30 calendar days after a reportable situation has arisen. The 30 calendar days (the reporting period) starts on the day you first know that, or are reckless with respect to whether there are reasonable grounds to believe that a reportable situation has arisen. You must report to ASIC in the prescribed form and through the ASIC Regulatory Portal. Failing to report to ASIC when a reportable situation has arisen can attract both civil and criminal penalties.
ASIC expectations and guidance about your compliance systems
You should have a clear, well-understood and documented process for identifying, recording and reporting breaches to ASIC in a timely manner.
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