ASIC (Australian Securities and Investments Commission) regulates complaints and internal disputes in the financial services industry. ASIC introduced the new guide RG 271 to enhance complaints handling on October 5, 2021, replacing the previous guide RG 165. This blog post explores the fundamental changes outlined in RG 271 and their impact on financial firms. Stay informed to ensure compliance and effectively manage complaints.

Expanded Scope: 

RG 271 applies to various entities, including Australian financial services (AFS) licensees, unlicensed product issuers, unlicensed secondary sellers, trustees of regulated superannuation funds, and other specified firms. It ensures consistent standards across the industry, covering various financial services providers.

Phased Reporting Implementation: 

The new reporting format and standard are introduced in three stages, allowing firms to adapt and meet the requirements gradually. Let’s take a closer look at each stage:

• • • First Tranche Firms: These firms have already submitted their first IDR (Internal Dispute Resolution) reports to ASIC. They submitted their reports from January 1 to February 28, 2023, covering the reporting period of July 1 to December 31, 2022. Their reporting obligations are ongoing.
    • Second Tranche Firms: The second tranche of firms will commence reporting from July 1 to August 31, 2023, covering the reporting period of January 1 to June 30, 2023.
    • Third Tranche Firms: Lastly, the third tranche firms will begin reporting from January 1 to February 29, 2024, covering the reporting period of July 1 to December 31, 2023.

New Data Requirements:

 Starting from July 1, 2023, all financial firms subject to RG 271 must adhere to the new data collection format. Download the latest version of the IDR data book here. Here’s a summary of the key data requirements:

• • • Data Collected: The new format includes 16 data elements with predefined options and codes. These elements encompass complaint issues related to specific products. For detailed information, refer to the latest version of the IDR data handbook.
    • Mandatory, Conditional, and Optional Fields: Out of the 16 fields, 10 are mandatory and must be completed for all complaints. ‘Not applicable’ or ‘unknown’ options may be available. Five fields are conditional and require completion based on specific answers from other data elements. Finally, one field is optional, allowing financial firms to complete or leave it blank.

Reporting Obligations:

To comply with RG 271, financial firms must adhere to the following reporting requirements:

• • • Submit reports to ASIC every six months.
    • Upload reports to the ASIC reporting portal.
    • Submit reports in a machine-readable format with specific headings. The data in the report must pass rules validation.
    • ASIC conducts a two-stage validation process, including basic and deep validation. Firms will be notified if their reports fail at either stage.

Simplify Data Collection and Reporting with Curium: 

Discover how Curium streamlines required data collection, end-to-end complaints management, and automated reporting processes. Watch our video demonstration to see how our comprehensive software simplifies and automates complaints management under RG 271. Enhance efficiency and ensure compliance in your organization with Curium’s seamless solutions.

Conclusion:

As the implementation date of RG 271 approaches, financial firms must familiarize themselves with the new requirements outlined by ASIC. Ensure compliance, streamline complaints handling, and leverage available tools and resources to facilitate efficient reporting processes. Stay ahead of the changes, deliver excellent customer experiences, and meet regulatory standards with Curium.

To access the valuable webinar materials from our recent session on Changes to Complaints regulation – what you need to know, click the button below to download. Gain exclusive insights, presentation slides, and key takeaways that will empower your compliance and claims management strategies. We appreciate your participation and hope you find the materials helpful for your business’s growth and success.