Australian watchdog slams banks for delays in reporting breaches

© Reuters. Australian watchdog slams banks for delays in reporting breaches

By Paulina Duran

SYDNEY (Reuters) – Australia’s corporate regulator said on Tuesday that a review had found the way in which the country’s four largest banks and largest listed wealth manager reported and remediated breaches of the law was “unacceptable”.

The breaches under the 2014-to-2017 review had caused financial losses to consumers of about A$500 million (£276 million), and remediation had not been completed, the regulator said.

“Many of the delays in breach reporting and compensating consumers were due to the financial institutions’ inadequate systems, procedures and governance processes, as well as a lack of a consumer orientated culture,” said James Shipton, chairman of the Australian Securities and Investments Commission (ASIC).

The review of legal compliance covered 12 financial institutions, including Commonwealth Bank (AX:), Westpac Banking Corp (AX:), Australia and New Zealand Banking Group (AX:), National Australia Bank (AX:), and AMP Ltd (AX:), the regulator said in a statement.

It found that on average, it took more than 5 years from the occurrence of a significant breach before customers were remediated.

The regulator, which has been criticised at a powerful inquiry into financial sector misconduct for being soft on finance firms, said it was considering enforcement action for failures to report breaches on time.

“There is an urgent need for investment by financial services institutions in systems and processes as well as commitment and oversight from boards and senior executives to address these significant failings,” Shipton added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Read More   UK energy regulator takes compliance action over energy supplier complaints

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.