Extension of Australian Financial Complaints Authority’s jurisdiction

The Treasurer has issued AFCA Scheme (Additional Condition) Amendment Authorisation 2019 requiring the Australian Financial Complaints Authority (AFCA) to amend its rules to consider disputes back to 1 January 2008.

UPDATE 18 June 2019: ASIC has approved changes to the Australian Financial Complaints Authority (AFCA) Rules which give effect to the AFCA authorisation condition introduced by Government on 19 February 2019.

The change will permit AFCA to consider cases of financial misconduct (whether they relate to banking, superannuation, insurance or financial advice) relating to a member of the AFCA scheme at the time the complaint is made dating back to 1 January 2008 provided the complaint is made any time during the period starting on 1 July 2019 and ending on 30 June 2020.

AFCA will be able to consider disputes dating back to 1 January 2008 that have not previously been heard or settled and which fall within AFCA’s current monetary limits and compensation thresholds.

Current compensation thresholds are $500,000 for consumers, $1 million for small businesses and $2 million for primary producers.

The change does not apply to a complaint in relation to a superannuation death benefit or if relates solely to privacy issues.

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