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ASIC cracks down on AFCA membership

ASIC cracks down on AFCA membership

— 1 minute read

The corporate regulator has clamped down on financial services licensees who have failed to gain membership with the Australian Financial Complaints Authority, after 58 were reported to have not acted in accordance with the conduct obligation. 

The firms had previously held external dispute membership with previous schemes, failing to join AFCA since it was established in November.

Following ASIC’s intervention, 50 of the financial services licensees subsequently sought AFCA membership, four voluntarily cancelled their licences and a further four saw their licences cancelled or suspended by ASIC. 

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Out of 217 credit licensees without AFCA membership, 131 obtained membership, 38 voluntarily cancelled their licences and 48 were suspended or cancelled by ASIC. 

“ASIC has taken proactive measures to protect consumers form those few financial services licensees and credit licensees who were not complying with the obligations of their licence by being a member of AFCA,” ASIC commissioner Sean Hughes said.

“ASIC’s intervention means that consumers now have access to the independent dispute resolution scheme of AFCA if their complaints are not being properly considered by the financial services licensee or credit licensee.”

Last month, ASIC approved changes to AFCA rules, allowing the body to handle complaints dating back to 2008.

 

ASIC cracks down on AFCA membership
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah spent her career working in business-to-business media, including print and online, as well as cutting her teeth on current affairs programs for community radio. 

Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.

You can contact her on [email protected].

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