ASIC has released details of the new mandatory complaints reporting requirements that will come into effect from 2023. Since October 2021, financial firms have had an obligation to record all information regarding complaints, in significantly expanded dispute resolution regime.
Background
ASIC has released new internal dispute resolution (IDR) reporting requirements to satisfy Recommendation 8 of the Ramsay Review into financial services dispute resolution. The Ramsay review was released in 2017 and recommended that financial institutions be required to report on their IDR activity to ASIC. Since the release of the review, ASIC has implemented several reporting requirements in RG 271. These new obligations to be implemented will intensify the already existing reporting requirements.
Updated requirements
From 2023, all Australian Credit Licensees and Australian Financial Services Licensees who provide financial services to retail clients, will be required to submit a report to ASIC detailing their IDR data. The updated requirements will first apply to a group of large financial firms selected from various sectors. Eleven firms, including the Commonwealth Bank of Australia, National Australia Bank Limited, AMP Limited, and AustralianSuper will be required to submit a report to ASIC by 28 February 2023 detailing their IDR data. The remainder of the approximately 10,500 financial firms in Australia will be required to submit their first report to ASIC by 31 August 2023 and then on a half-yearly basis going forward.
ASIC Deputy Chair Karen Chester has stated that the 'new reporting requirements will assist firms to recognise and rectify any issues that arise from complaints'. After all firms have begun submitting their reports, ASIC will begin publishing collated IDR data that will cover all complaints received by financial firms from 1 January 2023 to 30 June 2023. Ms. Chester stated that 'ASIC collecting, and publishing IDR data will give greater visibility of where frequent issues arise across the financial services industry'.
We encourage everyone to review the new requirement (as well as the requirements which commenced in October 2021 if you haven't already one so) and ensure your business will be able to meet the new requirements when they go live (for most, this is August 2023).