The Australian Securities and Investments Commission (ASIC) announced earlier this week that they have approved the rules for the Australian Financial Complaints Authority (AFCA) and the terms of reference for the AFCA Independent Assessor.
This notification comes out just as the Royal Commission is conducting their inquiry into the sales practices into insurance companies.
Many of the insurance companies in question have come under the questioning of the Financial Ombudsman Service (FOS) and the Superannuation Compliant Tribunal (SCT) which will be replaced the new all-encompassing complaints tribunal, AFCA.
“We look forward to working with ASIC, and consumer, small business and industry stakeholders in implementing this important reform, which will assist in restoring trust and confidence in the financial services industry,” ASIC Deputy Chair Peter Kell said in an official statement earlier in the week.
ASIC reminds those financial institutions with retail clients, that they must register their membership with AFCA by September 21st. The corporate regulator said that 80 per cent of the FOS’ members have already transferred over and 64 per cent have transferred from the SCT.