Maintain AFCA membership (mandatory external dispute resolution)
AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
Who must comply
AFSL holders, ACL holders, RSE licensees, trustee companies.
What triggers it
Holding a relevant licence.
When due
Continuous.
Evidence required
AFCA membership; complaint handling records; compliance with AFCA determinations.
Max penalty
Licence consequences; civil penalties for failure to comply with AFCA determinations
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Since 1 November 2018, the Australian Financial Complaints Authority is the sole AU external dispute resolution scheme. AFSL holders, ACL holders, superannuation trustees, and traditional trustee companies must be members and comply with AFCA determinations (up to $6,317,000 monetary jurisdiction for most disputes).
Enforced by
Source legislation
Topics
Related
- CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
- CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- CWLTHLodge a prospectus for offers requiring disclosureOffers of securities to retail investors require a prospectus or OIS lodged with ASIC.
- CWLTHBest interests duty for financial advisers (s 961B-G)Personal advisers must act in client's best interests + meet related obligations.
- CWLTHRegister a Managed Investment Scheme under Ch 5CSchemes with 20+ retail members must be registered with ASIC as MIS.
Frequently asked questions
- Who must comply with AFCA membership (mandatory external dispute resolution)?
- AFSL holders, ACL holders, RSE licensees, trustee companies.
- What triggers AFCA membership (mandatory external dispute resolution)?
- Holding a relevant licence.
- When is AFCA membership (mandatory external dispute resolution) due?
- Continuous.
- What is the maximum penalty for AFCA membership (mandatory external dispute resolution)?
- Licence consequences; civil penalties for failure to comply with AFCA determinations
- What evidence is required for AFCA membership (mandatory external dispute resolution)?
- AFCA membership; complaint handling records; compliance with AFCA determinations.
Source: https://afca.org.au. Rules Mate is not a law firm. Always verify against the live regulator source before acting.