Australian Financial Complaints Authority

Australian Financial Complaints Authority
AbbreviationAFCA
Predecessor
Formation1 November 2018; 6 years ago (2018-11-01)
TypeOmbudsman
Legal statusNonprofit organization
PurposeFinancial dispute resolution
Location
Region served
Australia
MembershipAustralian banks, insurers, credit providers, financial advisers and planners, debt collection agencies, superannuation members and other businesses that provide financial products and services
Chief Ombudsman
David Locke
AffiliationsAustralian Securities & Investments Commission (ASIC)
FundingMembership fees
Websitewww.afca.org.au

The Australian Financial Complaints Authority or AFCA is an Australian external dispute resolution (EDR) company for consumers who are unable to resolve complaints with member financial services organisations.[1] It is operated as a not-for-profit company limited by guarantee and was authorised in 2018 by the then Minister for Revenue and Financial Services, Kelly O'Dwyer, in accordance with the Corporations Act 2001 (Cth).[2]

Membership of AFCA is a requirement under law or license condition of all financial firms and financial service providers that provide services in Australia.[3] AFCA is led by the Chief Ombudsman and CEO, presently David Locke.[4][5]

AFCA replaced the three pre-existing EDR schemes of the Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and Superannuation Complaints Tribunal (SCT).[6]

History

The Australian Financial Complaints Authority was established on 1 November 2018, replacing the Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT).[7] The Australian Government announced on 9 May 2017 that AFCA would be established in response to the review of external dispute resolution and complaints arrangements in the financial system.[8][2]

Operations and processes

Rules

The Rules of AFCA outline the types of complaints that AFCA can consider, as well as their procedures, remedies and reporting obligations. The rules were approved by the Australian Securities & Investments Commission (ASIC) on 12 September 2018.[9]

Resolution process

The AFCA only considers a complaint after the consumer has first attempted to resolve the dispute directly with their financial service provider. If the dispute is unable to be resolved or the outcome is unsatisfactory, AFCA can then consider it.

Complaints can be filed with AFCA through an online form on their website. An AFCA representative will then contact the consumer and relevant financial service provider to settle the dispute. In the case a settlement cannot be reached, an AFCA case analyst will develop a balanced solution. The consumer can then either accept the proposed settlement from AFCA or take their dispute to court.[7]

Governance

The Australian Financial Complaints Authority is governed by a Board of Directors, which includes equal numbers of industry and consumer representatives. The Independent?? Chair of the Board is Helen Coonan.[10] The Board appoints an independent?? Chief Ombudsman and CEO, presently David Locke.[5]

Funding

AFCA is funded by its member financial firms through annual membership and complaint fees.[11][12]

See also

References

  1. ^ "Heraldsun.com.au | Subscribe to the Herald Sun for exclusive stories". www.heraldsun.com.au. Retrieved 16 November 2018.
  2. ^ a b "Australian Financial Complaints Authority". treasury.gov.au. Retrieved 16 November 2018.
  3. ^ "ASIC warning to AFCA laggards | Money Management". 25 October 2018. Retrieved 16 November 2018.
  4. ^ "Subscribe to The Australian | Newspaper home delivery, website, iPad, iPhone & Android apps". www.theaustralian.com.au. Retrieved 16 November 2018.
  5. ^ a b "David Locke to Lead Australian Financial Complaints Authority | PBA". Pro Bono Australia. Retrieved 16 November 2018.
  6. ^ "Super ombudsman's new powers will command respect". Australian Financial Review. 28 October 2018. Retrieved 16 November 2018.
  7. ^ a b "AFCA: The acronym all Australian consumers should know". The New Daily. 31 October 2018. Retrieved 16 November 2018.
  8. ^ Hastie, Eliot (31 October 2018). "AFCA officially opens for business". Retrieved 16 November 2018.
  9. ^ "18-263MR ASIC approves Australian Financial Complaints Authority rules". Australian Securities & Investments Commission. 12 September 2018. Retrieved 16 November 2018.
  10. ^ "The Complaints Whisperer: Helen Coonan's clear vision for the new Australian Financial Complaints Authority". www.intheblack.com. Retrieved 16 November 2018.
  11. ^ "How are we funded". AFCA. Retrieved 16 October 2024.
  12. ^ "New AFCA funding model and fees". Bright Law. Retrieved 8 June 2022.