ASIC is seeking feedback on its proposed changes to internal dispute resolution (IDR) standards and reporting in financial services firms. As partner Selina Nutley warns, if implemented, these changes will require financial services firms to broaden internal policies and revise material distributed to clients detailing complaints processes.
ASIC's Regulatory Guide 165 (RG165) sets out what financial services firms must do to have a dispute resolution system in place which meets ASIC's requirements. Recently, ASIC released a consultation paper seeking feedback on some proposed amendments to RG165 relating to IDR processes. Some of the key proposed changes are as follows:
Given the likely increased workload through additional reporting and analysis obligations, financial services firms may need to increase staffing in their remediation and IDR teams.
ASIC aims to release new IDR standards by the end of 2019, as well as separate consultation papers on the publication of IDR data in early 2020. We will keep you up to date with any developments.