The Australian Securities & Investments Commission has granted a class no-action position that immediately reduces small banks’ internal dispute resolution (IDR) data reporting frequency from twice yearly to once per year, providing interim relief ahead of a formal rule and system change. Under the class no-action letter, ASIC does not intend to take action against small banks that do not submit an IDR report in the January–February 2026 and January–February 2027 submission windows specified in Instrument 2022/205, and the relief exempts eligible small banks from the next IDR data submission window. The approach follows a Council of Financial Regulators recommendation from its Review of Small and Medium-sized Banks and is intended to lower regulatory costs and improve small banks’ competitiveness; the letter also notes it does not prevent third parties from pursuing legal action. ASIC expects to formalise the technical and system changes in 2027.
Australian Securities & Investments Commission 2025-09-24
Australian Securities & Investments Commission issues class no-action relief to move small banks to annual IDR complaints reporting
The Australian Securities & Investments Commission (ASIC) has issued a class no-action position reducing the internal dispute resolution (IDR) data reporting frequency for small banks from twice yearly to once per year, providing interim relief before a formal rule change. This exempts eligible small banks from IDR data submissions in early 2026 and 2027, following a Council of Financial Regulators recommendation to lower regulatory costs and enhance competitiveness. ASIC plans to formalize these changes in 2027, while the no-action position does not prevent third-party legal actions.