ASIC urges financial services licensees to join new dispute resolution body

Maria Nikolova

Australian financial services licensees, credit licensees, authorised credit representatives and superannuation trustees have to join AFCA no later than September 21, 2018.

The Australian Securities and Investments Commission (ASIC) published a statement earlier today reminding financial services firms working with retail clients of the deadline to join the new external dispute resolution body – the Australian Financial Complaints Authority (AFCA). All Australian financial services licensees, Australian credit licensees, authorised credit representatives and superannuation trustees must join AFCA no later than September 21, 2018.

Financial firms that do not register will be in breach of the law, ASIC warns. The Australian regulator says it is closely monitoring membership lists with AFCA and will be following up with firms that fail to meet this deadline.

ASIC is finalising an instrument which allows firms an extended period to notify ASIC about their AFCA membership details. Firms will be able to update their details between November 1st and 30 November 30th. This, however, does not extend the period for joining AFCA.

Earlier this month, ASIC approved the AFCA Complaint Resolution Scheme Rules and the Terms of Reference of the AFCA Independent Assessor (IA).

Let’s note that AFCA has recently released an updated guidance for financial firms on how to let their customers know about AFCA. From September 21, 2018, AFCA members must ensure that IDR final response letters and ‘delay letters’ include references to both the relevant predecessor external dispute resolution (EDR) scheme (which will be able to receive complaints only up until 31 October 2018) and AFCA (which will be able to receive complaints on and after 1 November 2018).

Between November 1, 2018 and February 1, 2019, such letters may continue to include references to both the predecessor EDR scheme and AFCA, provided it is clear that only AFCA can receive complaints after November 1, 2018.

On or after February 1, 2019, such letters must include references to AFCA but not the predecessor EDR schemes.

Read this next

Market News

US Dollar Climbs as Japan Ends 8 Years of Negative Rates

With the passage of eight years, Japan’s Bank of Japan (BOJ) has bid adieu to its experimental negative interest rate policy, marking the end of a daring yet contentious economic manoeuvre aimed at revitalising Japan’s stagnant economy.

Payments

Cryptocurrency in Forex: Revolutionizing Payments and Trading

In recent years, the integration of cryptocurrency payments within the realm of Forex trading has surged dramatically. This transition signifies a profound shift in the financial landscape, offering a wide range of benefits for both brokers and traders alike.

Digital Assets

Bybit Unleashes Zero-Fee Revolution in P2P Crypto Trading

Bybit, the world’s third biggest crypto exchange by volume, has launched a zero-fee policy for its P2P trading, removing all transaction costs for buyers and sellers. This pioneering approach allows global traders to enhance their savings and profits without extra charges.

Fintech

ANZ deploys CobaltFX’s Dynamic Credit platform

“This new approach to credit management has helped eliminate carve-outs as well as reduce credit usage while improving our market access. This capability benefits our customers, counterparties, and the bank.”

Industry News

FINRA fines M1 Finance $850,000 for misleading ‘finfluencer’ activities

“As investors increasingly use social media to inform their financial decisions, FINRA’s rules on communicating with the public are especially critical. FINRA will continue to consider whether firms are using practices and maintaining supervisory systems that are reasonably designed to address the risks related to social media influencer programs.”

Institutional FX

Eurex launches a new first: STOXX Semiconductor 30 Index Futures

“Recent global uncertainties have prompted nations to prioritize the secure production and distribution of semiconductors. Consequently, our STOXX Semiconductor 30 Index Futures are reflecting the growing appetite for semiconductors as a new investment theme. We are seeing a noticeable demand from Asia in particular, as Taiwanese companies are well represented in the index.”

Fintech

Finalto doubles down on APAC region with oneZero curated liquidity from Tokyo

“We are excited to announce the expanded relationship with oneZero not only by using their Institutional Hub as a key component in our technology stack, but now by adding the Equinix TY3 data center to the LD4 and NY3 data centers. This exemplifies our dedication to providing our customers with cutting-edge technology options in accessing our wide liquidity and product offerings via a seamless trading experience.”

Retail FX

From Backtesting to Arbitrage: Practical Applications of AI in the World of Retail Trading

In this article, the industry leaders delve into the transformative role of AI in trading.

Digital Assets

FTX claim value soars to 92%, creditor sued for reneging on $58M deal

Attestor Capital, a London-based investment firm holding significant FTX bankruptcy claims, has initiated legal action against a Panamanian company called Lemma Technologies.

<