The Australian Securities and Investments Commission (ASIC) released four new information sheets outlining the “important” processes of external and internal dispute resolution, with the sheet relating to financial services and credit providers also focusing heavily on external dispute resolution (EDR) schemes.
ASIC deputy chairman Peter Kell noted that in instances of alleged misconduct, while ASIC closely assesses all of the information it receives, not all reports will prompt further action.
There may be other more appropriate avenues the public should pursue, like an Ombudsman scheme such as the Financial Ombudsman Service (FOS) and Credit Ombudsman Service (COSL), he added.
ASIC said each report it receives are weighed against four criteria:
- What is the extent of harm or loss?
- What are the benefits of pursuing the misconduct?
- How do other issues, like the type and seriousness of the misconduct and the evidence available, affect the matter?
- Is there an alternative course of action?
ASIC said it is important to make the public aware of the alternative actions available to them in particular circumstances.
ASIC advised consumers to first “try to resolve your dispute with the financial services or credit provider through the IDR process”.
“If you are unhappy with the response at IDR, you should take your complaint to the EDR scheme. You have the right to have your complaint dealt with,” ASIC stated.
The release follows a similar release of five information sheets in October last year, which ASIC said “marked the beginning of a campaign of transparency that aims to communicate what ASIC does with reports of alleged misconduct it receives from the public, what kind of outcomes reporters can expect, and what other more suitable avenues or remedies they might access.”
The release “clearly explains how we approach these particular matters as part of our overall approach to regulation,” Mr Kell said.
