It is six months since the new mandatory breach reporting obligations were enforced in Australia on 1 October 2021 across the financial services and insurance sector.
Legal technology company Lawcadia, and Gadens, a national firm with strong financial services regulatory practice, considered it essential to understand the ramifications of the new breach reporting obligations to legal, risk and compliance teams. Hence in January 2022, they commissioned CoreData Research, an independent research partner, to conduct an industry-leading research study to understand the key challenges, potential benefits, and how the industry has received the new regime.
The research took place between March and April 2022 with completed surveys of 160 financial services organisations in Australia. Furthermore, in-depth interviews with senior risk and regulatory compliance professionals were conducted to uncover additional qualitative insights.
The research findings and insights will be published in the inaugural ‘State of Financial Services Breach Reporting in Australia‘ on 28 April 2022.
The research uncovers how the impact of the breach reporting obligations has reverberated throughout financial services organisations.
Initially a high ramp-up in workload occurred as organisations digested the content of their new obligations, mapped out implementation plans and developed internal policies and procedures.
A significantly increased workload has continued in the aftermath of the new rules coming into play, as organisations grapple with the tasks of identifying incidents and then investigating and assessing these incidents to determine whether they are required to be reported within the short time-frame.
The research brought to light several key statistics on breach reporting and important challenges facing AFS and AC licence holders –
53% of respondents cite the complexity of the new rules as a source of challenges.
55% say the breach reporting regime has led to an increase in how much their organisation is spending on compliance.
51% of respondents indicated that they were not confident that ASIC can administer the new regime effectively and fairly.
Want to discover more insights and reporting statistics? Access the full report now.
With increased regulatory activity and new legislations coming into play, managing risk, identifying compliance issues and meeting regulatory obligations required a new solution. Lawcadia and the Gadens Breach Manager solved these challenges for Fitzpatricks Private Wealth.
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