ASIC has released internal dispute resolution (IDR) reporting documents, which will be tested in a pilot involving financial firms from across relevant industry subsectors in late 2021.
This release represents the next step in preparedness for ASIC’s implementation of the Government’s mandatory IDR data reporting framework, which came out of the Ramsay Review of the financial system dispute resolution framework. IDR data reporting is intended to improve transparency in the IDR system, assist consumer decision making and allows firms to benchmark themselves against their peers. It is also intended to assist ASIC in identifying emerging issues.
The reporting documents include a data dictionary and data glossary. The data dictionary sets out the information that financial firms will be required to collect and report to ASIC. The data glossary provides explanations about the key terms in the data dictionary.
The pilot versions of the data dictionary and data glossary have been developed and substantially simplified through two rounds of public consultation. The documents are designed to align as closely as possible with the reporting approach of the Australian Financial Complaints Authority so as to develop an end-to-end picture of financial system complaints. Key changes made in response to consultation include to:
- remove free text fields;
- remove mandatory reporting of demographic information; and
- allow flexibility to including multiple products/services and issues per complaint.
Financial firms should now consider how to map their own complaints systems to the data dictionary. ASIC is aware most financial firms will already be collecting more granular and detailed data about the complaints they receive. Final versions of the data dictionary and glossary may differ from the pilot versions if technical issues are identified during the pilot, however any such changes will be kept to a minimum.
ASIC has also released REP 693 Response to submissions on ASIC’s internal dispute resolution data consultations that sets out our response to submissions received on the data reporting requirements in Consultation Paper 311 Internal dispute resolution: Update to RG 165 (CP 311) and the Addendum to CP 311 (Addendum). Among other matters, CP 311 and the Addendum outlined ASIC’s approach to implementing the IDR data framework and included draft versions of the data dictionary.