Are you one of the 89% of the Licensee population who hasn’t lodged a breach report to ASIC?

The information provided in ASIC’s Report 775 (released on 31 October) indicates that with such a low proportion of Licensees who have lodged a report (only 11%!), some licensees may not have in place the systems and processes required to detect and report breaches.

If you are in the 89% it is critical to consider if your systems, processes, policies and training is fit for purpose and adequate.

Do all staff know what their role is when it comes to reportable breaches? Have they been trained on the changes and are they aware of internal processes?

66% of reports specified a root cause of staff negligence and/or error, which continued to be the most common root cause of breaches by a significant margin. Licensees should ensure that there are no other underlying root causes or broader failures in their systems, policies or processes that may be contributing to the high incidence of staff negligence and/or error.

Are you reporting the same as other businesses of the same size and complexity? If not you may be on ASIC’s radar…

ASIC has commenced surveillance activity targeting licensees who may not be meeting their obligations. ASIC will focus on licensees who are not reporting or are reporting significantly less than expected given their nature, scale, complexity, and when compared to peers.

ASIC re-iterated they expect all licensees, regardless of size, to have robust systems and processes in place to ensure timely detection and reporting of any non-compliance.

Don’t get caught out! If you haven’t already made changes to your policies, systems, and processes, think about doing this as a priority, as the new regime commenced in October 2021 and ”licensees have had ample time to take the necessary steps to ensure full compliance with the requirements” ( ASIC Chair Joseph Longo). Also, ensure sure anyone in your business who needs to be across the changes is and is also aware of the role they play to make sure you are meeting your obligations.

This is complex, and we are here to help. Don’t hesitate to reach out to the team at Tangelo if you need a hand with this or any other compliance matters.