The Australian Securities and Investments Commission is seeking feedback on a plan to reduce the reporting burden on financial services licensees.

ASIC intends to give relief under the reportable situations regime for certain breaches of the misleading and deceptive conduct provisions and certain contraventions of civil penalties.

This would apply when the breach has been rectified within 30 days of occurrence; the number of affected customers does not exceed five; the total financial loss or damage does not exceed $500; and the breach is not a contravention of client money reporting rules and clearing and settlement rules.

ASIC says the measure follows feedback that current arrangements “have very little intelligence value”.

“This reporting also involves a cost for licensees,” ASIC said. “Our proposal seeks to strike a balance between reducing the reporting burden on licensees, while upholding the objectives of the reportable situations regime.

“The requirement that the breach is rectified (including any necessary remediation) within 30 days ... encourages licensees to have good internal systems that quickly detect and rectify problems.”

The Financial Services Council has welcomed the proposal.

“The regulator has acknowledged industry concerns that reporting these minor breaches is excessively burdensome,” CEO Blake Briggs said. “These proposals go some way to addressing some of the problems. However, more work needs to be done.”

The closing date for submissions is March 11. Click here for details.