Australian Parliament establishes Financial Complaints Authority, which will provide consumers and businesses alike with better resources to resolve future disagreements. When will the agency start its operations?
14 February, AtoZForex – The Australian Parliament has passed a Bill that approves the establishment of the Australian Complaints Authority (AFCA). The fact that the bill has passed the parliament finalizes the process that has been going on for many months. In fact, the authorities have been mulling over the approving the bill for over 20 months.
Australian Parliament Establishes Financial Complaints Authority
The establishment fortifies the dispute resolution rulebook, which has been analyzed by an independent panel. The panel has been led by Ian Ramsay, who has an extensive experience in this area. He is currently serving as a Professor at Melbourne Law School.
The present idea is that consumers and businesses alike will be enjoying better resources to resolve future disagreements. Moreover, the higher monetary and compensation limits will be available of AFCA after its establishment that will contribute to the overall success of the project.
Following on this, the AFCA will begin receiving and resolving disputes “no later than November 1.” In the meantime, the Australian Securities and Exchange Commission (ASIC) will serve as a regulatory body that is responsible for overseeing AFCA.
The Deputy Chairman of ASIC, Peter Kell, has commented on the passing of the Bill:
“Fair, timely and effective dispute resolution is a cornerstone of the financial services consumer protection framework. The combination of firms’ internal dispute resolution procedures and access to a free independent external scheme currently provides redress for many tens of thousands of Australians each year. Strengthening these dispute resolution requirements will help deliver higher standards and better outcomes in the financial services market.”
ASIC will receive complaints for the time being
Peter Kell has further added:
“The establishment of a single scheme for all financial services and superannuation complaints is a very positive development, building on the outcomes achieved over many years by the existing three schemes: the Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal.”
Before AFCA will be officially able to operate in the dispute resolution process, the primary financial regulator of Australia ASIC will carry on with processing complaints.
ASIC will receive the consultation on the matter of Regulatory Guide 139. The guide aims to set out the specifics of ASIC’s supervisory role in relation AFCA.
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