Adopting new ASIC requirements for IDR (Complaints) reporting – things to remember

Starting from July 2023, financial institutions in Australia must adhere to ASIC guidelines. They must record and report Complaints data in a new format specified by ASIC. Here are the key points you need to know for better compliance and reporting:

Timelines

ASIC has introduced a staged implementation of the new standards in three phases:

    • Stage 1: Selected large financial institutions have already submitted their reports in the new format in January 2023. Check the list here.
    • Stage 2: The second tranche of large financial institutions is expected to submit their reports by August 2023, covering the period from January to June 2023. Find the list here.
    • Stage 3: All other financial institutions are required to submit their first reports in 2024, covering the period starting from July 2023.
New reporting format

ASIC mandates a machine-readable reporting format, which can be found here. It’s essential to remember that AFSL holders must follow specific rules for a standardized report, available here.

Required information in the report:

    • Complaint details: Include the complaint’s date, time, and nature, such as product-related or service-related issues. Specify the category of the complaint, for example, delays or denial of claims. Ensure to include any reference or identification numbers associated with the complaint for easy tracking.
    • Customer information: Capture relevant details about the complaining customer, such as name, contact information, policy or account number, and additional identification or verification data.
    • Investigation and assessment: Record details of the complaint investigation, including assigned staff and initiation and completion dates. Gather evidence or supporting documentation related to the complaint during the investigation process. Document findings or determinations made during the investigation process for reference and analysis.
    • Resolution and outcomes: Document actions taken to resolve the complaint, such as compensation or remedies provided. Include information about the outcome of the complaint, whether it favored the customer or the insurer, and any follow-up actions or agreements.

ASIC has provided a comprehensive data handbook that defines the necessary codes and definitions for capturing and documenting complaints. It’s crucial for firms to utilize this data for performance analysis and improvement of internal processes. Curium has embraced ASIC methodology for reporting and automated the process to streamline operations. With automated reporting, you can focus on enhancing your business and effectively resolving customer concerns.