The Australian Securities and Investments Commission (ASIC) is seeking feedback on breach reporting guidance as it prepares for the start of strengthened obligations.

ASIC says the reforms, set to take effect from October 1, are likely to generate a significant increase in the volume of reports as more entities will be required to report and the rules will apply to a wider range of breaches.

“Breach reporting is a core component of Australia’s financial services and credit regulatory framework,” Deputy Chairman Karen Chester said. “The reforms will better position us to act decisively to disrupt misconduct and escalating harms and identify patterns of non-compliance across industry.”

The reforms flow from the 2018 ASIC Enforcement Review Taskforce and the Hayne royal commission and aim to reduce uncertainty about when a breach, or likely breach, is significant and reportable.

Licensees will have to lodge reports alerting ASIC to a potential reportable situation within 30 days, while there’s an obligation to report an investigation if it has continued for more than 30 days. ASIC will publish data about breach reports annually on its website.

ASIC is also seeking feedback on a draft information sheet on notify, investigate and remediate obligations that apply in the case of personal advice or credit assistance.

Comment on the draft guidance and information sheet is due by June 3, with ASIC to publish final guidance before the obligations start.

The consultation paper is available here.