Australian Financial Ombudsman closes record volume of disputes in Q2 2018

Maria Nikolova

Shortly before the Ombudsman’s transition to new dispute resolution body AFCA, it publishes the last set of quarterly statistics.

Australia’s Financial Ombudsman Service (FOS) which will soon transition to new external dispute resolution body AFCA, has managed to close a record number of disputes in the second quarter of 2018. This is indicated by the latest quarterly statistics recently published by the FOS.

Even as the FOS moves towards AFCA commencing, it is still resolving FOS disputes. The Ombudsman received 11,790 disputes in the quarter from April to June 2018 – 17% more than in the same quarter last year – and it closed 11,611 disputes, which is the highest number closed in a quarter in the past five years.

Most disputes received this quarter were credit disputes (40%), followed by general insurance disputes (30%). Investments disputes were 508, accounting for 4.3% of the total.

Of the closed disputes, more than two-thirds (64%) were resolved through an agreement between the financial services provider and the consumer. Compared with last quarter (59%), this is a 5% increase. The FOS closed 14% of disputes because they were outside FOS’s jurisdiction and 7% due to applicants deciding not to pursue their dispute(s).

The Ombudsman closed more than 6% of disputes at the Preliminary View stage and 8% at the Decision stage.

Let’s also 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.

Below is a recommended referring copy:

Read this next

Executive Moves

Investall hires ex-DriveWealth Steve Cortright as CEO

Investall is an AI-driven mobile trading platform for personal finance and investing that delivers AI-driven trading for thousands of equities and major cryptocurrencies.

Digital Assets

SIX integrates CryptoCompare’s cryptocurrency data feed

SIX will provide digital asset data to its clients via the same delivery channels as its leading reference, pricing, corporate actions, regulatory, tax and ESG data.

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.

Technology

OneConnect launches operation in ADGM further expanding in Middle East

OneConnect has launched its regional operations in Abu Dhabi Global Market (ADGM), the leading international financial centre of the capital of the UAE, after having worked together on the creation of the ADGM Digital Lab which was launched in April 2021. The ADGM Digital Lab is a marketplace and industry sandbox to encourage the development […]

Industry News

Bitso powers crypto into Via’s payroll platform as remote work triples by 2027

“We are also allowing companies to hire international talent without worrying about administrative issues.”

Retail FX

Vantage partners with FinaCom for external dispute resolution and up to €20,000 protection per client

Vantage has joined the Financial Commission (FinaCom) as a member, thus gaining access to the external dispute resolution body’s range of services and membership benefits, including the unbiased resolution process facilitated by FinaCom, and the protection of up to €20,000 per client, covered by the FinaCom’s compensation fund.

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

<