ASIC has welcomed the achievement of a major milestone for Australian consumers and small business – the start of Australia’s new financial services dispute resolution scheme, the Australian Financial Complaints Authority (AFCA).
More than 35,000 firms operating across financial services, credit and superannuation have joined AFCA, and from 1 November 2018 their customers will have access to AFCA’s free and independent dispute resolution service to deal with complaints that aren’t resolved directly by the financial firm.
AFCA members holding a financial services or credit licence must notify ASIC of their AFCA membership details by 30 November 2018. Credit licensees must also notify ASIC of the AFCA membership details of their authorised credit representatives who are AFCA members.
This includes all former FOS and CIO members who have now joined AFCA.
Late fees will not apply if AFCA details are updated by 30 November. If transitioning firms update their AFCA membership details after this date late fees will apply.
Firms can notify ASIC by logging in to ASIC’s online services and updating their details.
Important information: completing the notification
For AFCA members who were former FOS members, you should enter a commencement date of 1 May 2018. The commencement date should be the same date as the effective date.
For AFCA members who were former CIO members, your commencement date will be the date you received your AFCA membership certificate. The commencement date should be the same date as the effective date.
The new single scheme for all financial services, credit and superannuation complaints commences operation with significantly enhanced monetary limits for most consumer and small business complaints. It will be able to deal with:
- consumer and small business complaints about most financial products and services with a value of up to $1 million, and award compensation up to $500,000;
- small business and primary producer complaints about credit facilities up to $5 million in value, and award compensation up to $1 million and $2 million respectively;
- superannuation complaints with an unlimited value.
To join AFCA go to the AFCA website www.afca.org.au
© Australian Securities & Investments Commission. Reproduced with permission.