The Australian Securities and Investments Commission (ASIC) has released its first industry-wide report under the internal dispute resolution (IDR) data reporting framework.
Covering complaints received between July 2023 and June 2024, the report marks a significant step in promoting transparency and improving complaints handling in the financial sector.
ASIC’s analysis revealed notable trends across the financial industry:
Despite the progress, ASIC identified inconsistencies and gaps in reporting. More than 5,000 firms reported no complaints, a number significantly higher than expected.
Commissioner Alan Kirkland (pictured above) emphasised the importance of accurate data.
“The gaps we’ve identified suggest there may be inconsistent IDR reporting practices across the industry,” Kirkland said. “Firms must act now to address these issues, as starting next year, we’ll publish firm-level complaint data.”
ASIC is closely examining firms with discrepancies by cross-referencing other datasets, including reports from the Australian Financial Complaints Authority (AFCA), which recently reported a significant 25% rise in complaints from Aboriginal and Torres Strait Islander peoples over the past financial year.
To enhance compliance, ASIC plans to consult on how firm-level data will be contextualized and presented before its publication in 2025. This initiative aims to empower consumers by providing greater transparency and enable firms to benchmark their complaint-handling performance.
Financial firms are urged to refine their IDR reporting processes and review ASIC’s Regulatory Guide 271 and detailed reporting requirements to ensure accuracy.
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