The updates to Regulatory Guide 78 Breach reporting by AFS licensees and credit licensees (RG 78) clarify the existing guidance's aspects and provide new guidance in responding to operational issues that have arisen since the implementation of RG 78 on October 1, 2021.
ASIC updated the guidance after analysing reports it received and obtaining direct feedback from the industry and other stakeholders to clarify the requirements for licensees, including a targeted consultation that considered feedback from various industry associations from the insurance, banking, superannuation, financial advisers, markets, and credit sectors.
The updates to RG 78 include:
ASIC will also amend the prescribed form for lodging reportable situations, to be implemented on May 5, 2023. Additionally, it will clarify how some questions should be answered and point licensees to guidance available in RG 78.
Suneeta Sidhu, ASIC acting executive director, financial services & wealth, said the update aims to improve the consistency and quality of reporting practices by licensees and reduce regulatory burden.
“The improved guidance will support industry to meet their obligations and support the regime to meet its policy objectives for ASIC, [the] industry, and consumers,” Sidhu said. “We acknowledged early on that there were some implementation challenges with the regime. Our updated guidance has been developed following consultation with industry on practical solutions to some of these challenges.”
ASIC also recently called on superannuation trustees to improve life insurance outcomes for customers after examining actions taken by a sample of 15 superannuation trustees.
