Breach Reporting Regulations – Supplementary Consultation
On 13 April 2021, the Corporations Law Committee and the Financial Services Committee from the Business Law Section of the Law Council of Australia provided a submission on the exposure draft Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2020 Measures) Regulations 2021 (Cth) (Breach Reporting Regulations), which set out proposed amendments to the Corporations Regulations 2001 (Cth) (Corporations Regulations), the National Consumer Credit Protection Regulations 2010 (Cth) (Credit Regulations) and related fees regulations (released on 10 March 2021).
One aspect of the Draft Regulations was to amend the Corporations Regulations and Credit Regulations to prescribe some civil penalty provisions which should be taken not to be automatically treated as significant under the breach reporting regime in the event of a contravention.
On 9 June 2021, representatives of the Financial Services Committee attended a meeting with representatives of Treasury and the Australian Securities and Investments Commission (ASIC) to discuss some follow-up matters ahead of the finalisation of the Breach Reporting Regulations. During that meeting, Treasury shared a request made by the Australian Banking Association (ABA) that the scope of “credit legislation” that will be treated as “core obligations” under the National Consumer Credit Protection Act 2009 (Cth) (Credit Act) be better aligned with the scope of “financial services laws” that will be treated as “core obligations” under the Corporations Act 2001 (Cth) (Corporations Act).
We have been asked to provide our input to Treasury on how this might be achieved
You can read the full submission below.