ASIC has updated the implementation timeframe of the internal dispute resolution (IDR) data reporting framework to support smooth implementation of this important reform for firms reporting their IDR data for the first time.
ASIC has further staged the implementation for the 8,600 reporting firms, which will result in all financial firms reporting their customer complaints data to ASIC for the first time.
In early 2023, the first group of 97 large financial firms, including banks and some superannuation funds, reported their IDR data to ASIC (see 22-071MR).
By August 2023, a second group of around 260 financial firms will submit their IDR reports for the first time. The firms within these first two tranches account for many of the largest financial firms and we estimate will account for well over 60 percent of consumer and small business complaints made at IDR.
The balance of financial firms, which include many smaller firms, must submit their IDR reports to ASIC for the first time by 29 February 2024.
ASIC Deputy Chair Karen Chester said, ‘We reached a significant milestone early in 2023 when the first group of licensees reported IDR data to ASIC. The staged implementation will see most large financial firms reporting IDR data to ASIC by August 2023.
‘Importantly those firms account for the large majority of consumer complaints made through IDR. The staged implementation will also allow more time for many smaller firms to prepare for the start of their reporting obligations. This is the next step in the implementation of this important reform that will see all licensees reporting IDR data to ASIC by end February 2024.
‘The framework is a culmination of detailed consultation with industry to improve and standardise the quality of IDR data. Collection of IDR data will improve ASIC’s capabilities as a data driven regulator. This data will give greater visibility of where consumers experience problems or where harms may be occurring within firms.
‘It will be an invaluable resource for ASIC, industry, consumer groups and ultimately consumers themselves,’ concluded Ms Chester.
The implementation of the framework is given effect by the following instruments:
- ASIC Corporations (Internal Dispute Resolution Data Reporting) Instrument 2022/205
- ASIC Corporations (Amendment) Instrument 2023/282
Financial firms should check the amending legislative instrument to find out when they are required to start submitting IDR data reports to ASIC.
ASIC has also updated the IDR data reporting handbook (handbook) responding to industry feedback to support firms to consistently report their IDR data. The handbook outlines the requirements for firms to report IDR data under the framework and includes the data dictionary and data glossary. Minor clarifying edits have been made to the data dictionary contained within the handbook (see the ‘Overview of changes’ linked below).
ASIC will not publish IDR data until all financial firms have commenced reporting after 29 February 2024. ASIC will be analysing the data as it comes in to inform its final approach to publication and will communicate our final approach well in advance of publication.
Financial firms can get more information on the requirements from ASIC’s IDR data reporting page, which includes frequently asked questions.
