Financial services firm Deloitte has backed the regulators’ call for a single online breach reporting system for dual-regulated institutions.
ASIC and Australian Prudential Regulation Authority (APRA) plan to eliminate the requirement for jointly-regulated institutions to provide separate breach reports for the some incident to both regulators.
“Both APRA and ASIC should be congratulated for this proposal. Deloitte strongly supports it,” Deloitte superannuation assurance and advisory partner Tony Brain said.
“It’s a win-win situation for both superannuation funds and regulatory authorities,” he said.
“The proposal of a one-stop-shop would improve, streamline and reduce the cost of the reporting of breaches and would be eagerly received by superannuation funds.
“From the regulators’ perspective, the streamlining of these services will stop duplication and allow authorities to monitor breaches more effectively.”
The proposed system will enable all APRA-regulated institutions – authorised deposit-taking institutions, general insurers, life insurance companies, friendly societies and super licensees – to report breaches to APRA online.
It will also enable those institutions regulated by both APRA and ASIC to report online breach notifications required to be lodged with both regulators through a single breach report to APRA.
“Breach notifications provide APRA and ASIC with valuable information to help identify emerging trends or issues, as well as alerting APRA and ASIC to specific breaches of the law,” ASIC deputy chairman Jeremy Cooper said.
The proposal follows the recent passage through parliament of the Financial Sector Legislation Amendment (Simplifying Regulation and Review) Act 2007.
The Act introduces a consistent definition of reportable breaches across all institutions in APRA-regulated industries and all ASIC-regulated Australian Financial Services licensees.
APRA and ASIC invite comment on the proposals by 31 October 2007.
