AFCA fact sheet - DOCX 187KB
Bill - EXTERNAL LINK
On 9 May 2017, the Government announced that a new one stop shop to deal with financial system complaints would be established, in response to the Review of external dispute resolution and complaints arrangements in the financial system (the Ramsay Review).
The Government has introduced a Bill to establish the new body, the Australian Financial Complaints Authority (AFCA). The AFCA scheme will be authorised by the Minister for Revenue and Financial Services. AFCA will be a not-for-profit company limited by guarantee and funded by member contributions. The Bill sets out standards that AFCA must meet, provides additional powers in relation to superannuation disputes and gives ASIC certain regulatory powers, including the power to issue directions. AFCA’s terms of reference will set out how legislative and policy requirements will be met.
Transition to AFCA
The Minister for Revenue and Financial Services has established a Transition Team led by Dr Malcolm Edey to manage the transition to AFCA from the three existing external dispute resolution schemes (the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal).
Dr Edey will advise the Minister on key elements of AFCA’s operations, including its terms of reference, governance and funding arrangements, to assist the Minister in her decision to to authorise the AFCA scheme. This may include advice on conditions of authorisation.
Dr Edey is consulting with parties on key issues that are not yet settled (as outlined in the fact sheet). Issues that have already been settled by the Government’s endorsement of the Ramsay Review recommendations will not be re-opened.
Explanatory Memorandum - EXTERNAL LINK
Senate Economics Legislation Committee report on the Bill - EXTERNAL LINK
Government response to the Ramsay Review - EXTERNAL LINK