The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) today released a new online breach reporting system for dual-regulated institutions.

The online system simplifies the process for regulated institutions to report breaches, and prospective breaches, of a legal provision of an APRA-administered or ASIC-administered Act, standard or rule, as well as other matters that are required to be reported. It also reduces duplication faced by institutions regulated by both APRA and ASIC. The superannuation industry is already using an online system to report breaches to APRA.

The new system:

• enables all APRA-regulated institutions — authorised deposit-taking institutions, general insurers, life insurance companies, friendly societies and superannuation licensees — to report breaches to APRA online; and
  
• enables those institutions regulated by both APRA and ASIC to report breach notifications required to be lodged with both regulators through a single electronic breach report to APRA, thereby eliminating the requirement for dual‑regulated institutions to provide separate breach reports for the same incident to both regulators.

APRA Member, Mr John Trowbridge, said APRA and ASIC have again demonstrated effective cooperation and commitment by reducing the reporting burden for dual-regulated institutions. "I am pleased industry supports this initiative to report breaches in an efficient and low-cost way. Now all APRA-regulated institutions will be able to report online, not just superannuation entities," he said.

ASIC Deputy Chairman, Mr Jeremy Cooper said "this initiative has been about responding to industry to achieve better outcomes for regulated entities. It will not only help improve supervisory effectiveness, but also streamline the reporting obligations of institutions".

This initiative follows the passage through Parliament, in late 2007, 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.

Further details are available on the APRA website at http://www.apra.gov.au/breach/ and the ASIC website at www.asic.gov.au. 

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $3 trillion in assets for 21 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276

All other inquiries:
APRA Contact Centre 1300 131 060.