The introduction of Australian Financial Complaints Authority (“AFCA”)

There is a new complaints authority in town!

The AFCA will start hearing disputes no later than 1 November 2018 after its passage through parliament.

What is the AFCA?

AFCA is an amalgamation of the Financial Ombudsman Service (“FOS”), the Credit and Investments Ombudsman (“CIO”) and the Superannuation Complaints Tribunal (“SCT”). It is to be funded by members of the scheme. All financial firms will be required to be members of the AFCA scheme, such a superannuation funds and insurers.

The primary complaint regarding all schemes was the time delays being, on average, with FOS 54 days for a standard complaint with more complex cases being 154 days. The CIO is 118 days and the SCT being 796 days to a determination. This was primarily brought about by resourcing issues and a large backlog of complaints. The amalgamation will hopefully see a more streamlined process.

How will it be different ?

The AFCA will be an ombudsman style of complaint system, as opposed to a tribunal, like the former SCT. The aim is that complaints are to be resolved in a fair, efficient and timely manner. AFCA will not be amenable to Judicial Review other than an appeal to the Federal Court on questions of law.

As part of this legislation, there is an enhanced role given to ASIC. In part, this includes issuing directions and publishing data on internal dispute activity. This will assist consumers in assessing which organisations are having internal complaints made mostly and may assist in the decision to purchase a financial product.

The AFCA will have broader monetary jurisdictions than the former bodies allowing for a larger number of matters to be heard.

It will remain to be seen whether AFCA will have the desired effect to expedite external complaints in a fair manner and we await this introduction with excitement.

Related Tag: Lawyer Coolangatta

Recent Articles

Can I Sue NSW Public Hospitals for Medical Negligence?

When we need medical care, we should be able to trust our healthcare professionals to provide the highest standard of treatment. Thankfully, we have a high-quality healthcare system in Australia and can usually count on getting the help we need. But the system...

NSW Workers Compensation Commutations – Lump Sum Payouts Explained

A commutation is an agreement between an injured worker and the workers compensation insurer whereby the insurer effectively ‘buys out’ the worker’s future claim entitlements in a lump sum payment. A commutation generally removes the insurer’s liability to fund all...

Cyclist accidents and compensation: Are you covered as a driver?

As our roads get busier, accidents are almost unavoidable – no matter how careful we are! If you get into an accident with another vehicle driver, both drivers probably have insurance to cover injury and perhaps even damage to the vehicles.  But what if you get...

When your employer denies your workers compensation claim

Every year, WorkCover Queensland receives around 95,000 workers compensation claims – and rejects about 4 per cent of them. It doesn’t sound like much, but it adds up to 3,800 declined claims each year. Many of these are compensation claims for work-related...

Understanding your rights after a car accident in NSW

In Australia, every state and territory has a scheme to protect people who are involved in a motor vehicle accident. In New South Wales, this includes compulsory third party insurance (or a ‘green slip’), which you need to buy before you can register your car. If...

Changes to workers compensation laws in Queensland

Australia’s workers compensation laws are complex and always evolving. Each state and territory has its own scheme. In 2023, a review of Queensland’s workers compensation scheme found some weaknesses in the system. As a result, the Workers’ Compensation and...

Changes to NSW Motor Accident Injuries Scheme

If you’re injured in a motor vehicle accident on New South Wales roads, you may be eligible for compensation under the NSW Motor Accidents Injuries Act 2017 (Motor Accident Injuries Scheme). However, the scheme has undergone recent changes that you should be aware...

SETTLEMENT CALCULATOR

SERVICES

h

ARTICLES

CONTACT