ASIC today released the final mandatory requirements for the internal dispute resolution (IDR) data reporting framework.
The requirements will be implemented in 2023 starting with a group of 11 large financial firms that will have to report IDR data to ASIC for the first time by 28 February 2023 (see list of financial firms below). The remainder of the approximately 10,500 financial firms will join the framework and be required to report IDR data to ASIC by 31 August 2023.
Since 5 October 2021, financial firms have been required to record all complaints received and have an effective system for recording information about complaints (see Regulatory Guide 271 Internal dispute resolution (RG 271)).
ASIC Deputy Chair Karen Chester said ‘The IDR data reporting framework is the culmination of many years of work with industry to record, improve and standardise the quality of IDR data. Updated standards and requirements for IDR will assist firms to identify and address systemic issues that arise from complaints.’
‘ASIC collecting and ultimately publishing system wide IDR data is a consumer centric milestone. The data will give greater and public visibility of where harms may be occurring, across the financial system and down to the firm level. It will also elevate ASIC’s ability to be a data driven regulator. Ultimately, we all want to see consumers benefit when firms use this data to benchmark, even compete on, their IDR performance and to improve the way they respond to consumer complaints in practice.’
ASIC will begin publishing IDR data once all financial firms have commenced reporting after 31 August 2023. The first report will cover all complaints received by financial firms during the period between 1 January and 30 June 2023. In the coming months ASIC will consult on its approach to publishing the IDR data.
The requirements for firms to report IDR data under the framework are outlined in the IDR data reporting handbook and are given effect by ASIC Corporations (Internal Dispute Resolution Data Reporting) Instrument 2022/205. The handbook includes the data dictionary and data glossary published as part of the IDR data reporting pilot. The reporting requirements are the culmination of a substantial consultation process and successful IDR reporting pilot completed in late 2021 with seven financial firms (see 21-177MR).
‘The IDR data handbook we are releasing today also includes practical guides and checklists ASIC developed to assist firms (especially smaller firms) with their reporting. This practical guidance benefitted greatly from our consultation and the 2021 reporting pilot’, said ASIC Deputy Chair Karen Chester.
In the coming months we will release a consultation paper that seeks feedback on ASIC’s approach to publishing IDR data. We have also confirmed that we will only begin publishing data received for those complaints received after 1 January 2023.
