ASIC’s new reportable situations regime, which took effect last October, is proving hard to implement and the regulator has promised to work with industry to overcome the problems.

ASIC commissioner Sean Hughes said in a statement: “We are aware that the regime has led to a number of implementation challenges. We have developed a comprehensive plan of work to ensure that it meets its objectives for ASIC, industry and consumers.”

The new reporting regime was a recommendation of the Hayne royal commission, which said financial services licensees were left to make a judgment about which compliance breaches were significant and this made reporting inconsistent across the industry.

Under the old rules, credit licensees were required to lodge annual compliance certificates, rather than breach reports. Hayne was concerned that the information in these certificates was “high level” and did not detail specific breaches.

Since October 1 last year, credit licensees have had the same breach reporting obligations as financial services licensees.

Under the new rules, licensees have to report to ASIC if there are reasonable grounds to believe reportable situations have arisen in relation to financial advisers operating under another financial services licence. Credit licensees will be required to report serious compliance concerns about individual mortgage brokers.

Licensees will need to report any investigation into whether a significant breach has occurred if the investigation lasts for more than 30 days.

The rules specify some breaches that must be reported, including gross negligence, serious fraud and misleading or deceptive conduct.

ASIC will publish data annually on breach reports.

Hughes said ASIC will communicate clear expectations for compliance and will consider whether further practical guidance should be developed to assist licensees in meeting their obligations.