The Australian Securities and Investment Commission (ASIC) granted a no-action position to reduce the frequency of internal dispute resolution data reporting for small banks immediately, from once every six months to once per year, to lessen regulatory costs for small banks and improve their competitiveness, according to a Wednesday statement.

It does not plan to take action against small banks for a contravention of the requirement to submit an internal dispute resolution report in the January-February 2026 and January-February 2027 submission windows.

The regulator adopted the no-action position before formalizing the technical and system changes expected in 2027.

The change was recommended by the Council of Financial Regulators following its review of small and medium-sized banks.