Transcript Slide 1

FOS reporting of systemic
issues and serious
misconduct
-ASIC’s perspective
Delia Rickard
Senior Executive Leader
Consumers, Advisors and Retail Investors
(and ACT Regional Commissioner)
ASIC
FOS reporting of systemic issues and serious misconduct
-ASIC’s perspective
The FOS obligation to report
‘systemic issues’ and ‘serious
misconduct’ to ASIC – an RG 139
requirement
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How to spot a ‘systemic issue’ or ‘serious misconduct’?
FOS reporting of systemic issues and serious misconduct
-ASIC’s perspective
How to spot a ‘systemic issue’ or ‘serious misconduct’?
RG 139
reference
Key
features
Examples
Systemic issue
RG 139.121 – 139.125
Serious misconduct
RG 139. 126 – RG 139.128
Has implications beyond the
immediate actions and rights of
the parties to the
complaint/dispute
May be evident from a single
complaint
Includes:

deliberate or fraudulent
conduct

grossly negligent or
inefficient conduct

willful or flagrant breaches of
the relevant laws

Fraud

Inappropriate advice
resulting in significant client
losses

Persistent or deliberate
failure to have a properly
working IDR process

Persistent or deliberate
failure to properly co-operate
with the FOS process



poor disclosure/
communication (eg faulty
disclosure given to a class of
clients)
administrative/ technical/
computer error (eg wrongly
calculating fees and charges)
Improper interpretation or
application of standard terms
(eg applying an exclusion
wrongly across a class of
clients)
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FOS reporting of systemic issues and serious misconduct
-ASIC’s perspective
• What do we expect FOS to do once
they have identified systemic issues
and serious misconduct reports?
• Three step process:
– Identify the issue,
– Refer to the relevant member, and
– Report to ASIC
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FOS reporting of systemic issues and serious misconduct
-ASIC’s perspective
What we expect to see in FOS’
quarterly systemic issues
and serious misconduct reports
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FOS reporting of systemic issues and serious misconduct
-ASIC’s perspective
What ASIC does when we get
these reports
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FOS reporting of systemic issues and serious misconduct
-ASIC’s perspective
• Key steps ASIC would encourage you to take
to properly identify and address systemic
issues and serious misconduct:
– Have a system as part of your IDR process
to identify and record systemic issues (RG
165)
– Work with FOS to resolve the systemic
issue/serious misconduct
– Notify ASIC of any significant or likely
breach within 10 business days
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