AFCA - an entity to ensure consumer protection in Australia

The Australian government decided to establish a body whose main task is to settle disputes on the local financial market. The Australian Securities and Investments Commission (ASIC), i.e. the Australian financial supervision, has just accepted the goals of the Australian Financial Complaints Authority (AFCA) and its Independent Assessor (IA).

Time to 21 in September

According to the decision of the Australian authorities, all financial companies whose services are aimed at retailers (i.e. also Forex brokers) are required to join the AFCA system by September 21, 2018, which means that they only have a week of time left. At the moment, almost all members of the Ombudsman's Finance program have transferred their membership to the AFCA. About 80% of members of the Ombudsman for Credit and Investment Rights program and about 64% of pension and savings fund managers also joined the new system.

AFCA is expected to start functioning in full range since November 1 2018 year.

Peter Kell, deputy chairman of ASIC:

ASIC approval is another milestone on the way to the start of the AFCA program on November 1 2018. The approval of the AFCA principles and the scope of the IA is followed by public consultations, and both AFCA and ASIC appreciate the contribution of industry and consumer representatives to the process. Further significant changes to the AFCA system will also have to be approved by the ASIC.

Hon. Helen Coonan, Chairman of the AFCA Board:

AFCA will provide consumers and small businesses with access to a fair, free and independent complaint handling system. We look forward to working with ASIC and stakeholders from the consumer sector, small businesses and industry in implementing this important reform that will help restore confidence in the financial services industry.

The Australian financial regulator is responsible for approving key changes in the AFCA system in line with the Corporates Act of 2001. This is an important element of the role of ASIC in supervising the operation of the new system. Applications for membership can be made on the website afca.org.au.