Who must maintain AFCA membership (mandatory external dispute resolution)?
The applicability test for Maintain AFCA membership (mandatory external dispute resolution) (AFCA and ASIC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has an AFSL or ACL or industry: Superannuation trustees.
What the obligation is
AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
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).
The applicability test
Applies when the business has an AFSL or ACL or industry: Superannuation trustees.
How the regulator frames it: AFSL holders, ACL holders, RSE licensees, trustee companies.
What triggers it: Holding a relevant licence.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (1 of 35: yes; 34 of 35: no).
| Industry | Answer |
|---|---|
| Superannuation trustees | Yes |
| No | 34 other industries |
Business structure and size
Structure does not change the answer in superannuation trustees: for every structure the answer is "yes".
Size does not change the answer in superannuation trustees: at every size band the answer is "yes".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in superannuation trustees with 6–19 employees, turnover $1M–$3M: applies. Industry: Superannuation trustees.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires an AFSL or ACL or industry: Superannuation trustees.
Answers that bring it into scope
Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:
- The business holds an Australian financial services licence (AFSL): it then applies (AFSL holder).
- The business holds an Australian credit licence (ACL): it then applies (ACL holder).
What you must do, and when
- When due
- Continuous.
- Frequency
- Ongoing
- Evidence to keep
- AFCA membership; complaint handling records; compliance with AFCA determinations.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Licence consequences; civil penalties for failure to comply with AFCA determinations.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
What usually applies alongside it
Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:
- Superannuation flagging on separation: applies to 100% of the same businesses (35.0× the overall rate)
- MySuper authorisation for default super products: applies to 100% of the same businesses (35.0× the overall rate)
- Comply with SPS 530 (Investment Governance) for APRA-regulated super funds: applies to 100% of the same businesses (35.0× the overall rate)
- Stronger Member Outcomes — APRA SPS 515: applies to 100% of the same businesses (35.0× the overall rate)
- Annual YFYS performance test (MySuper + Choice): applies to 100% of the same businesses (35.0× the overall rate)
- Design and Distribution Obligations (DDO) — RG 274: applies to 100% of the same businesses (11.7× the overall rate)
Where it sits in the corpus
Rules Mate tracks 1 published obligation tagged "edr", 1 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Financial Complaints Authority and Australian Securities and Investments Commission.
AFCA: External dispute resolution body for financial services, credit, insurance, and superannuation complaints. Mandatory member scheme.
ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).
Corporations Act: The foundational federal Act for Australian corporate law.
Free tools that help with this obligation:
Questions
- Who must maintain AFCA membership (mandatory external dispute resolution)?
- Applies when the business has an AFSL or ACL or industry: Superannuation trustees.
- Do sole traders need to maintain AFCA membership (mandatory external dispute resolution)?
- Yes. Looking in superannuation trustees and every size band, the engine's answer for a sole trader is: yes.
- Do businesses with 1–5 employees need to maintain AFCA membership (mandatory external dispute resolution)?
- Yes (1–5 employees, turnover $100K–$1M).
- When is "Maintain AFCA membership (mandatory external dispute resolution)" due?
- Continuous.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.