ASIC will not publish firm level RS data, for now

The Australian Securities and Investments Commission (ASIC) has made a key concession to financial services licensees, agreeing not to publish firm level reportable situations (RS) data.

The regulator will, however, publish aggregated RS data and has declared it will be publishing firm level data on Internal Dispute Resolution (IDR).

However, in detailing its response to a broad range of submissions, ASIC has undertaken to make clear to consumers that the ratio of IDR issues handled by a company is not necessarily an indicator of poor performance.

ASIC said it will be producing an IDR dashboard with firm level data but that the “IDR dashboard will include clear statements that volumes of complaints do not necessarily indicate poor performance by a firm. Volumes between firms will vary due to a range of factors, including the firm’s market share and product offerings”.

“A firm with a positive compliance culture and robust processes may record and report higher volumes than a comparable firm,” ASIC said.

Encapsulating the sentiment contained in the 30 submissions received during its consultation process, ASIC said several submissions had noted that that additional scrutiny might discourage reporting, undermining the regulatory objectives of increased transparency.

However, it said other submissions considered publication would “drive additional accountability and encourage firms to improve compliance with the regime by allowing media, policymakers, consumer advocates and the public to assess firm behaviour and highlight issues and trends”.

It suggested this would ultimately produce better outcomes for consumers.

ASIC also noted that a number of submissions had suggested that the new regime would increase the regulatory burden on firms.

However, it claimed data publication would not increase the regulatory burden “as it does not alter firms’ existing obligations under RS and IDR regimes”.

“ASIC has a statutory obligation to publish information each financial year about reports lodged relating to reportable situations and the Australian financial services licensees and Australian credit licensees who submitted those reports,” ASIC said.