One-stop shop financial services external dispute resolution update

Financial Services Minister Kelly O’Dwyer has given an update on the establishment of the Australian Financial Complaints Authority (AFCA).

The Government has established a transition team to bring the Australian Financial Complaints Authority into being by 1 July 2018.

AFCA will provide a one-stop-shop for financial services external dispute resolution, as recommended both by the Ramsay Review and the report of the Small Business and Family Enterprise Ombudsman.

It will replace the current system which comprises the Financial Ombudsman Service, Credit and Investments Ombudsman, and the Superannuation Complaints Tribunal.

Former Reserve Bank of Australia Assistant Governor Dr Malcolm Edey will lead the transition and the transition team.

Once legislation to establish the AFCA has passed the Parliament, the focus of the transition team will shift to overseeing the operational transition from the existing schemes to AFCA.

The Government has also asked the Ramsay Review to also consider the establishment, merits and potential design of a compensation scheme of last resort.

This is to be considered along with the merits and issues involved in providing access to redress for past disputes.

The Ramsay panel will provide part 2 of its final report on these two new issues to Government by early September.

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