The Government has announced a review of the Australian Financial Complaints Authority (AFCA).
AFCA is the external dispute resolution body established to resolve complaints by consumers and small businesses about financial firms.
The Treasury is to undertake this review and is to report to the Minister for Superannuation, Financial Services and the Digital Economy by no later than 30 June 2021.
The Review will consider:
- Is AFCA meeting its statutory objective of resolving complaints in a way that is fair, efficient, timely and independent?
- Is AFCA’s dispute resolution approach and capability producing consistent, predictable and quality outcomes?
- Are AFCA’s processes for the identification and appropriate response to systemic issues arising from complaints effective?
- Do AFCA’s funding and fee structures impact competition? Are there enhancements to the funding model that should be considered by AFCA to alleviate any impacts on competition while balancing the need for a sustainable fee-for-service model?
- Do the monetary limits on claims that may be made to, and remedies that may be determined by, AFCA in relation to disputes about credit facilities provided to primary production businesses, including agriculture, fisheries and forestry businesses remain adequate?
- Is there a need for AFCA to have an internal mechanism where the substance of its decision can be reviewed?
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.