ASIC Announces Consultation on Consumer Remediation Draft Guidance

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​The Australian Securities and Investments Commission (ASIC) announced today the release of a draft updated and expanded regulatory guide - Consultation paper 350 Consumer remediation: Further consultation (CP 350), to consult on the way licensees should conduct remediations to return money owed to consumers.

The draft guidance is an important step to improving remediation across the financial services industry. Proactive remediation upon discovery of misconduct or other failures is necessary for licensees to achieve good outcomes for their consumers and comply with their licensing obligations to act efficiently, honestly and fairly, said ASIC.

“We want our new guidance to help firms remediate with greater confidence and speed. Importantly, we have expanded our guidance to cover all financial services licensees, credit licensees and retirement service providers. Our draft guidance sets out how all licensees should act to ensure their remediations are conducted efficiently, honestly and fairly”, ASIC Deputy Chair Karen Chester stated.

The Australian financial regulator noted that comments should be submitted by 5 pm on Friday 11 February 2022.

A few days ago, Fazzaco reported that ASIC has released an information sheet on records of advice (ROA) and three ROA examples ​to provide clarity to financial advisers and advice licensees on their obligations when using ROAs to provide personal advice to retail clients.