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A licensee finds reasonable grounds to believe that a significant breach by one of its advisers caused clients loss they can legally recover. Within what time must it START investigating the affected clients' losses?
Section 912EB(2) of the Corporations Act 2001 (compilation 19 Sep 2026) requires the investigation to begin within 30 days after the licensee first knows of (or is reckless about) the circumstances in s912EB(1), and to be completed as soon as reasonably practicable (s912EB(4)). The licensee must notify affected clients of the reportable situation within 30 days (s912EA) and of the outcome within 10 days of completing the investigation (s912EB(5)).
The 10-day period exists, but it applies to telling clients the outcome after the investigation is completed.
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