ASIC tells firms to provide details of their membership in new dispute resolution body

The Australian Securities & Investments Commission (ASIC) has earlier today informed licensees of their obligation to provide the regulator with the details of their membership in the newly launched dispute resolution body.

ASIC says over 35,000 firms operating across financial services, credit and superannuation have joined AFCA, and from November 1, 2018 their customers have access to the services provided by the Australian Financial Complaints Authority (AFCA). AFCA offers free and independent dispute resolution service to deal with complaints that are not resolved directly by the financial firm.

AFCA members holding a financial services or credit licence must notify ASIC of their AFCA membership details by November 30, 2018. Credit licensees must also notify ASIC of the AFCA membership details of their authorised credit representatives that are AFCA members. This applies to all former FOS and CIO members who have now joined AFCA.

Late fees will not apply if AFCA details are updated by November 30, 2018. 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.

The new single scheme for all financial services, credit and superannuation complaints started operation with markedly enhanced monetary limits for most consumer and small business complaints. AFCA deals 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.