The Australian Securities and Investments Commission (ASIC) is inviting financial services industry feedback on proposed changes to its consumer remediation guidance.

A consultation paper on proposed clarification to the application of that guidance to all financial services licensees has been released, giving insurers the opportunity to provide feedback about the challenges they face in designing and executing remediations.

It includes real-life case studies based on remediations in which ASIC has been directly involved.

Submissions are due by February 26. ASIC will then release draft guidance for a second phase of consultation.

“We want firms to get on with the job of doing fair and efficient remediations in line with their legal obligations,” Acting Chair Karen Chester said. “The issues we are consulting on reflect the questions that firms frequently ask ASIC. Clarity on these issues will help firms step up and deliver good consumer outcomes”.

Since October last year around $1.68 billion has been returned to consumers in financial system remediations. ASIC is currently monitoring more than 100 remediations that it says could see the return of at least another $3.55 billion in total to 3.6 million consumers.

“Ensuring that the processes for returning this money are efficient and fair is central to consumer confidence and trust in financial products and services and in the firms themselves”, Ms Chester said.

“There are opportunities for firms to not only identify the issues that can lead to remediations earlier, but also to make sure that they have arrangements and systems in place to return money to affected consumer as fast and as fairly as possible.”