ASIC has released Regulatory Guide 267: Oversight of the Australian Financial Complaints Authority ahead of the commencement of the single external dispute resolution (EDR) scheme on 1 November 2018.
The announcement follows the appointment of public servant David Locke as chief ombudsman and chief executive on 15 June 2018.
AFCA will replace the existing EDR schemes the Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT).
Under the AFCA Act, the new EDR service will be required to refer systemic issues it identifies to ASIC.
In addition, ASIC will oversee AFCA's referral of matters to appropriate authorities, as well as the referral of settled complaints and the reporting of scheme statistics.
According to the regulatory guide, ASIC has the power to issue directions to AFCA and approve material changes to the EDR's scheme.
"ASIC will retain its existing guidance in RG 139 until all complaints made under the existing approved schemes FOS and the CIO have been resolved. We will then repeal that guidance," said ASIC.
"Licensees and credit representatives must continue to maintain their EDR membership through the transitional period, including paying membership and other scheme fees in full as required," said the regulator.
