Who must comply with AFCA membership (mandatory external dispute resolution)?

AFSL holders, ACL holders, RSE licensees, trustee companies.

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.

Maintain AFCA membership (mandatory external dispute resolution) (2026)

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

corporations act 2001

Topics

edrafcafinancial-services

Related obligations

CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
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.
CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
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.