ASIC has announced a significant extension of relief measures related to reportable situations and personal advice record-keeping requirements for financial services. This extension aims to enhance regulatory efficiency and support compliance within the industry.
ASIC is modifying Commonwealth legislation to provide ongoing relief from the reporting requirements of the reportable situations regime and to establish clear record-keeping requirements for situations involving personal advice. The new provisions will be effective until October 2029.
The decision follows a thorough review of the existing legislative framework, which includes the ASIC Corporations and Credit (Breach Reporting—Reportable Situations) Instrument 2024/620 and the ASIC Corporations Record-Keeping Requirements for Australian Financial Services Licensees when Giving Personal Advice Instrument 2024/508.
These instruments will consolidate and extend the relief previously provided under the 2021 instruments and class orders that are set to expire in October 2024.
The regulator's assessment found that the earlier instruments were operating efficiently and effectively, serving as essential components of the regulatory framework.
In August 2024, ASIC said there was intention to extend these provisions and invited public feedback until 4 September 2024. The response included six submissions, with general support for the proposed extensions.
“However, two primary concerns emerged from the feedback. Four submissions suggested that ASIC consider broader relief from the reportable situations regime, indicating a desire for more flexibility in regulatory requirements,” ASIC said.
“ASIC has committed to reviewing this suggestion and may seek further consultation if it determines that wider relief is warranted.”
Additionally, two submissions called for the migration of relief and requirements to primary law. ASIC noted that it has forwarded to the Commonwealth Treasury for consideration.
“ASIC plays a crucial role as Australia’s corporate, markets, and financial services regulator, ensuring that the legislative framework continues to support the industry while protecting the interests of consumers and investors,” ASIC affirmed.
“With these extensions, ASIC reaffirms its commitment to fostering a compliant and adaptive financial services sector.”
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