Summary of recommendations by chapter Chapter 1: Self-reporting of contraventions by financial services and credit licensees Number Description The test’ in section 912D of the Corporations Act 2001 should be ‘significance 1 retained but clarified to ensure that the significance of breaches is determined objectively Introduce a self-reporting regime for credit licensees equivalent to the regime for 2 AFS licensees under section 912D of the Corporations Act 2001 The obligation for licensees to report should expressly apply to misconduct by an 3 employee or representative Significant breaches (and suspected breach investigations that are ongoing) must 4 be reported within 30 days The required content of breach reports should be prescribed by ASIC and be 5 lodged electronically 6 Criminal penalties should be increased for failure to report as and when required A civil penalty should be introduced in addition to the criminal offence for failure 7 to report as and when required Encourage a cooperative approach where licensees report breaches, suspected or 8 potential breaches or employee or representative misconduct at the earliest opportunity Streamline the reporting requirements for responsible entities of managed 9 investment schemes by replacing the requirements in section 601FC(1)(l) of the Corporations Act with an expanded requirement in section 912D. 10 Require annual publication of breach report data for licensees by ASIC Chapter 2: Harmonisation and enhancement of search warrant powers Number Description ASIC-specific search warrant powers in various acts should be consolidated into 11 the ASIC Act
Summary of recommendations by chapter Chapter 1: Self-reporting of contraventions by financial services and credit licensees Number Description 1 The ‘significance test’ in section 912D of the Corporations Act 2001 should be retained but clarified to ensure that the significance of breaches is determined objectively 2 Introduce a self-reporting regime for credit licensees equivalent to the regime for AFS licensees under section 912D of the Corporations Act 2001 3 The obligation for licensees to report should expressly apply to misconduct by an employee or representative 4 Significant breaches (and suspected breach investigations that are ongoing) must be reported within 30 days 5 The required content of breach reports should be prescribed by ASIC and be lodged electronically 6 Criminal penalties should be increased for failure to report as and when required 7 A civil penalty should be introduced in addition to the criminal offence for failure to report as and when required 8 Encourage a cooperative approach where licensees report breaches, suspected or potential breaches or employee or representative misconduct at the earliest opportunity 9 Streamline the reporting requirements for responsible entities of managed investment schemes by replacing the requirements in section 601FC(1)(l) of the Corporations Act with an expanded requirement in section 912D. 10 Require annual publication of breach report data for licensees by ASIC Chapter 2: Harmonisation and enhancement of search warrant powers Number Description 11 ASIC-specific search warrant powers in various acts should be consolidated into the ASIC Act
ASIC-Enforcement-Review-Report.docx