Financial services companies will be responsible for reporting serious compliance concerns about financial advisers and mortgage brokers, under new breach reporting regulations.
Treasury has released an exposure draft of changes to breach reporting rules in the Corporation Act, which will strengthen the reporting regime for financial services companies. It has called for submissions by April 9.
The amended regulations also introduce a comparable breach reporting regime for credit licensees under the National Consumer Credit Protection Act.
The changes are in response to recommendations of the Hayne royal commission, which called for stronger breach reporting rules.
Following the implementation of the amended regulations, financial services and credit licensees will be required to report serious compliance concerns about financial advisers and mortgage brokers.
The changes prescribe a range of breaches that were not reportable previously and which may be in future.
And the changes ensure that breach reporting offences are subject to infringement notices.