The Australian Financial Complaints Authority is opening public consultation on proposed changes to the rules that govern its work helping consumers and financial firms to resolve complaints.
The proposed changes to its official Rules, and associated amendments to its Operational Guidelines, are largely designed to implement recommendations of the Treasury-led Independent Review of AFCA.
Consultation on the proposed changes begins on 27 March and is open until 22 May.
“AFCA has a significant three-year program of work underway to implement the Independent Review recommendations,” Deputy Chief Ombudsman Dr June Smith said. “Our proposed Rules and Operational Guidelines changes are an important component of that program.
“The aim is to ensure AFCA continues to deliver fair, independent, efficient and effective solutions for financial disputes,” Dr Smith said.
The Independent Review found that AFCA was performing well but should continue to develop and improve its procedures as it consolidated its place in the financial system.
AFCA’s Rules are approved by the Australian Securities and Investments Commission (ASIC) and explained in more detail in the Operational Guidelines (see the Rules and Guidelines web page). AFCA resolves complaints in accordance with those rules and guidelines.
AFCA closed 71,152 complaints in 2021-22. At the end of calendar 2022 it had 42,488 financial firm members.
The Independent Review set out 14 recommendations for AFCA or the federal government in its November 2021 report. It did not recommend any increase in the jurisdiction, or the monetary limits, of the AFCA Scheme, and the proposed Rules changes reflect that.
AFCA engaged an external consultant to draft the proposed changes, which are explained in the Consultation Paper, available on the Consultation page of the AFCA website.
“These proposals are an indication of the approach we may take but we are keen to hear from firms and consumers, whose feedback will help us as we seek to enhance the AFCA scheme,” Dr Smith said.
There are many ways to provide comment, including through webinars, meetings, an online submission form or written submissions. The Consultation page
