ASIC gives legitimacy to new complaints body

ASIC said in a statement that a key part of its role in overseeing the operation of the new scheme is that it’s required to approve material changes to the AFCA scheme under the Corporations Act 2001.

In providing a membership update, ASIC noted that almost all Financial Ombudsman Scheme members have effectively transferred their membership to AFCA.

Further, it said that around 80 per cent of members of the Credit and Investments Ombudsman Scheme and around 64 per cent of superannuation trustees and retirement savings accounts providers have also joined up.

ASIC said it’s a statutory requirement that financial firms, including most credit representatives that deal with retail clients, must join the AFCA scheme by 21 September.

It also mentioned that AFCA is providing regular membership updates to them so it can monitor financial firm compliance with the statutory membership deadline.

ASIC deputy chair Peter Kell said the approval marks another milestone towards the AFCA scheme’s commencement on 1 November.

“The approval of the AFCA Rules and the IA Terms of Reference follow a period of public consultation and feedback, and both AFCA and ASIC appreciate the timely contributions from industry and consumer representatives to that process,” Mr Kell said.

“Further material changes to the AFCA scheme will also need to be approved by ASIC.”

The chair of the board of AFCA, Helen Coonan, also welcomed approval from ASIC.

“AFCA will provide consumers and small business with access to fair, free and independent complaint resolution,” Ms Coonan said.

“We look forward to working with ASIC, and consumer, small business and industry stakeholders in implementing this important reform, which will assist in restoring trust and confidence in the financial services industry.”