AFCA consults on rule changes

Mike Taylor

Managing Editor/Publisher, Financial Newswire

28 March 2023

The Australian Financial Complaints Authority (AFCA) has opened a consultation around key changes recommended out of a Treasury review including excluding complaints lodged by professional or sophisticated investors.

AFCA said today it was proposing changes to its Rules and Operational Guidelines in the following general areas:

• The management of unreasonable and inappropriate conduct within the scheme, to strengthen AFCA’s ability to deliver procedural fairness under Recommendation 2, to manage the conduct of fee paid representatives who engage with the scheme under Recommendation 4, and to build greater efficiency and timeliness in complaint handling in response to Recommendation 5.
• Dealing with complaints where an appropriate offer of settlement has been made or where issues in dispute have been previously settled. These changes respond to Recommendations 1, 2, 5 and 7 to ensure only unresolved issues in dispute are progressed and that matters do not progress to case management or decision status where appropriate offers of settlement have already been made.
• Excluding complaints lodged by professional or sophisticated investors unless exceptions apply, as required by Recommendation 6.
• To enhance the visibility, accessibility and performance of the Forward Looking Review mechanism, under Recommendation 9.
• Clarity about the effect of AFCA determinations and how the slip rule works to ensure greater transparency and understanding of AFCA’s decision making under Recommendation 2. This is designed to ensure that complaints are finalised in a more timely and efficient manner under Recommendation 5.
• Minor changes to definitions and language to update certain areas of the Rules arising from legislative change, to give greater clarity and transparency of the scheme’s operation overall.

The consultation is open until 22 May.