Around 87% of financial firms successfully submitted an internal dispute resolution report to ASIC between 1 January and 14 March 2024, as part of new data reporting requirements.
The regulator says between 1 January and 29 February 2024, more than 8,600 financial firms were due to report internal dispute resolution data to ASIC for the first time.
It notes that it extended the submission window to 14 March “…to allow firms more time to complete this, understanding it is the first time most firms are engaging with the new reporting process.”
ASIC says this submission window saw the balance (third group) of financial firms, which include many smaller firms, commence reporting their IDR data to ASIC.
It notes:
- In early 2023, the first group of 97 large financial firms, including banks and some superannuation funds, commenced reporting their IDR data to ASIC
- By August 2023, a second group of around 340 financial firms commenced their IDR reports for the first time
- The firms in these first two groups account for many of the largest financial firms and are likely to account for well over 60% of consumer and small business complaints made
The commission says the “…high level of compliance with this new requirement is encouraging.”
It says firms are reminded of the need to meet this reporting requirement twice per year and that it will continue to engage with firms on doing so.
Publication of Internal Dispute Resolution Data
As background ASIC adds that the IDR data reporting framework “…is the culmination of many years of work with industry to record, improve and standardise the quality of dispute resolution data.”
It says that collecting “…and ultimately publishing, internal dispute resolution data will give greater public visibility of where consumers may be having difficulties. It provides ASIC with an important data set to assist with regulatory decision making, and will drive firms to improve IDR practices.”
ASIC notes that it will be analysing the data “…to inform our approach to publication. We will communicate our approach in advance of publication.”
Financial firms can get more information on the IDR requirements here.
