13-181MR ASIC releases new information sheets on dispute resolution and misconduct
Thursday 18 July 2013
ASIC has today released further information about its approach to commonly reported matters. Today’s release is about disputes with financial services and credit providers, unpaid debts, external dispute resolution and misconduct within companies under external administration.
Deputy Chairman Peter Kell said, ‘ASIC takes transparency and provision of information very seriously. The release of these four information sheets clearly explains how we approach these particular matters as part of our overall approach to regulation.’
The four newly released information sheets cover:
Disputes about unpaid debts: Small proprietary companies (INFO 173)
Disputes with financial services or credit providers (INFO 174)
Misconduct within company under external administration (INFO 175)
External dispute resolution: What to do if you are unhappy with a scheme decision (INFO 176)
‘Information Sheets 174 and 176 outline the important processes of internal and internal dispute resolution. These processes exist to resolve disputes between the public and financial services or credit providers and are a vital resource for resolving disputes.
‘In addition, Information Sheets 173 and 175 focus on common issues raised with ASIC about the unpaid debts of small proprietary companies, and directors’ duties in companies under external administration,’ Mr Kell said.
The Deputy Chairman also noted that in relation to the reports of alleged misconduct, while ASIC closely assesses all of the information we receive, not all reports will prompt further action. On occasion there are other more appropriate avenues the public should pursue such as an Ombudsman scheme.
ASIC weighs every report against four criteria:
What is the extent of harm or loss?
What are the benefits of pursuing the misconduct?
How do other issues, like the type and seriousness of the misconduct and the evidence available, affect the matter?
Is there an alternative course of action?
It is important that ASIC make the public aware of the alternative actions available to them in particular circumstances.
These Information Sheets and those previously published provide that guidance.
In October 2012, ASIC published five key pieces of information about its approach to handling complaints, tip-off and reports of misconduct (see 12-245MR). This marked the beginning of a campaign of transparency that aims to communicate what ASIC does with reports of alleged misconduct it receives from the public, what kind of outcomes reporters can expect, and what other more suitable avenues or remedies they might access.
Information Sheet 173 Disputes about unpaid debts: Small proprietary companies (INFO 173)
Information Sheet 174 Disputes with financial services or credit providers (INFO 174)
Information Sheet 175 Misconduct within company under external administration (INFO 175)
Information Sheet 176 External dispute resolution: What to do if you are unhappy with a scheme decision (INFO 176)