Material changes to AFCA’s Rules and Operational Guidelines have been approved by ASIC to be amended with effect on 1 July 2024.
There are 13 changes in total. Throughout the consultation process these changes were referred to as ‘change proposals’. For continuity AFCA has adopted the same numbering for the approved changes, i.e. change proposal 1 is referred to as change 1.
Table 1 below summarises the 13 changes and identifies where drafting changes were made in response to stakeholder feedback.
|
No |
Description |
Summary of changes made following consultation |
Relevant section |
IR Recommendation |
|---|---|---|---|---|
|
1. |
New Rules to enhance AFCA’s ability to deal with Paid Representative’s conduct |
Wording changes to ensure consistency in language |
Rules A.8.4a) and B.6 |
Recommendation 4 |
|
2. |
New Rules to address Complainant conduct and balance AFCA’s responsibility to provide a safe working environment for staff with its complaint handling mandate |
Wording changes to ensure consistency in language and additional examples included in the Operational Guidelines |
Rules A.8.4b), B.6 and C.2.2h) |
Recommendation 5 |
|
3. |
New Rule providing AFCA with a discretion to cease considering a complaint where the Financial Firm has offered the Complainant an appropriate remedy |
Wording changes and additional explanation included in the Operational Guidelines |
Rule A.8.3e) |
Recommendations 1,2, 5 and 7 |
|
4. |
New Rule to give AFCA discretion to close a complaint the subject of a previous full and final settlement between the parties |
Wording changes to provide additional explanation |
Rule C.2.2g) |
Recommendations 1,2, 5 and 7 |
|
5. |
Amendment of Operational Guidelines to clarify that AFCA will exclude investment-related complaints from sophisticated investors and professional investors unless special circumstances apply |
Wording changes to better align with the Corporations Act provisions |
Rule C.2.2j) |
Recommendation 6 |
|
6. |
Amendment of AFCA’s Operational Guidelines to more fully explain the operation of AFCA’s current forward looking formal review mechanism |
Wording changes to provide additional explanation |
Operational Guidelines to Rule A.15 |
Recommendation 9 |
|
7. |
Amendment of Rules to make clearer the consequences for parties if Complainant does not accept a Determination (no substantive change effected by this) |
The change proposal wording was retained |
Rule A.15.3b) |
Recommendation 5 |
|
8. |
New Rule to give more transparency to AFCA’s ‘slip rule’ (correction of a Determination where an accidental error occurs) |
Wording changes to clarify process and include the words ‘typographical error’ |
Rule A.14.6 |
Recommendations 2 and 5 |
|
9. |
Clarification of Rules to consistently refer to monetary restrictions and compensation amount limits as applying ‘per claim’ (no substantive change effected by this) |
Wording changes to ensure clarity |
Rule D.4 |
Recommendations 2 and 5 |
|
10. |
New provisions in Rule A.8 to set out objection process (rather than reference back to Rule A.4 for this process) |
Changes to ensure wording reflects Rule A.4.6 (as intended) |
Rule A.8.5 and A.8.6 |
Recommendations 2 and 5 |
|
11. |
Additional guidance to clarify when AFCA’s panels may be convened to decide Banking and Finance and Small Business complaints. |
The change proposal wording was retained |
Operational Guidelines to Rule 13.2 |
Recommendations 2 and 5 |
|
12. |
Amendment to definition of ‘Financial Services’ to explicitly include debt management assistance and credit reporting assistance as per NCCP Regulations |
The change proposal wording was retained |
Rule E.1 |
|
|
13. |
Amendment to Rules to better align reporting obligations with ASIC Regulatory Guide 267 requirements |
The change proposal wording was retained |
Rule A.20.1 |
|
