ASIC has formally approved material changes to the AFCA scheme following the consultation on changes to AFCA’s Rules and Operational Guidelines in 2023. AFCA has now published its Consultation Response outlining how it responded to formal submissions and stakeholder feedback. All non-confidential submissions were published in 2023.
This was the most significant review of AFCA’s Rules and Operational Guidelines since AFCA was established. The proposed changes to the Rules and Operational Guidelines were designed to implement the Review’s recommendations and ensure AFCA continues to provide efficient, timely operations so we can deliver fair, independent and effective solutions for financial disputes.
New versions of AFCA’s Rules and Operational Guidelines will be published on 1 July 2024, and will apply to complaints lodged on or after this date.
The incoming changes will:
- Increase AFCA’s ability to manage unreasonable or inappropriate conduct within the scheme from Complainants and Paid Representatives
- Deal with complaints where an appropriate offer of settlement has been made or where issues in dispute have been previously settled
- Provide further guidance and clarity on the exclusion of complaints lodged by professional or sophisticated investors unless exceptions apply
- Enhance the visibility, accessibility and performance of the Forward-Looking Review Mechanism
- Ensure greater transparency and understanding of AFCA’s decision making including how the slip rule works and clarification of effects of AFCA determination
- Make minor changes to definitions and language to update certain areas of the Rules arising from legislative change, which will give greater clarity and transparency of the scheme’s operation overall, and
- Make minor changes to clarify AFCA’s reporting and transparency obligations.
These changes were developed in response to recommendations made in Treasury's Independent Review of AFCA – with some additional changes to help ensure the Rules and Operational Guidelines remain accurate, up-to-date and provide clearer guidance about AFCA’s jurisdiction and processes.
