The Banking and Financial Services Ombudsman has released his office’s 2003-2004 Annual Report.

For the second consecutive year there has been a decline in the number of new cases (15.5 per cent) to 5,859 and an increase in the number of cases resolved prior to an investigation (90.1 per cent from 87.0 per cent in 2003).

As a consequence of the early resolution of many cases, disputes that do require investigation are now more complex.

As at 30 June 2004 the Scheme had 30 bank members and 17 non-bank members. To reflect increases in housing prices, borrowing levels and the size of investments, the Board has approved an increase in the jurisdictional limit from $150,000 to $250,000, to take effect in December 2004.

ASIC has issued a breach reporting guide for holders of an Australian financial services (AFS) licence.

The guide gives licensees examples of some breaches which may be significant. It also provides useful guidance on how to report a breach to ASIC, as well as the information that should be included in a breach report.

Under s912D of the Corporations Act, licensees are required to notify ASIC in writing of any significant breaches or likely breaches of their obligations, as soon as practicable and in any event within five business days of becoming aware of the breach or likely breach.

ASIC has announced that it is into the second stage of its compliance campaign to remove unlicensed operators from the financial services industry.

Over the next six months it will be doing compliance checks on anyone that appears to be conducting a financial services business without an Australian financial services (AFS) licence. The penalty for doing business without a licence is a $22,000 fine or two years jail or both.

The Australian Securities and Investments Commission (ASIC) has announced that it has granted relief to extend the date for compliance with the dollar disclosure regime from 1 January 2005 to 1 March 2005.

ASIC expects to publish a final policy statement on dollar disclosure in November 2004. This policy statement will specify in what circumstances, if any, ASIC might determine that dollar disclosure is not possible, unreasonably burdensome or contrary to clients’ interests.

Under the dollar disclosure provisions, providing entities and product issuers will be obliged to disclose various fees, benefits, costs and interests as amounts in dollars in the following documents:

ASIC has released a new Australian Financial Services Licence application (version 6) as well as an updated Pro Forma 209 Licence conditions.