Mackay Chapman AFCA Update
In recent months the Australian Financial Complaints Authority (AFCA) has:
- Released its 2022-23 Annual Review;
- Held its second member forum for 2023; and
- Reflects on its progress following the Treasury’s November 2021 independent review.
Each is a significant milestone or development for the financial services and banking external dispute resolution body. An overview and links to relevant materials for each of these events is below.
We will go a bit deeper on what members and industry can take from these developments in further posts.
AFCA Releases 2023 – 23 Annual Review
AFCA has released its annual review detailing its operations and performance for financial year 2023.
In it, AFCA sets out its strategy and values, member composition, and a comprehensive account of the complaints it has received over the last 12 months.
AFCA has emphasised how changes to complaint processing via enhanced technology and better allocation of resources has enabled it to manage a higher volume of complaints compared with 2022 (96,987 – up 34%), whilst being on track to implement by next year the recommendations delivered by Treasury in its 2021 review.
AFCA has also welcomed the passage in federal parliament of the Compensation Scheme of Last Resort. The scheme, which will be set up by AFCA, is designed to compensate consumers with payments of up to $150,000 in circumstances where a favourable AFCA determination has been awarded, but no redress is available because a financial firm becomes insolvent or does not pay compensation as directed.
The review is available for download here:
https://www.afca.org.au/news/latest-news/afca-publishes-2022-23-annual-review
AFCA Holds Second Member Forum for 2023
AFCA’s second member forum for 2023 was held on 16 and 17 of November.
The update to its 44,958 members was opened by Chief Ombudsman and CEO David Locke and Deputy Ombudsman Dr June Smith whose opening address provided an update on AFCA’s first five years, and its response to the Treasury 2021 the independent review.
This was followed by industry sessions for banking and finance & small business, investments and advice, superannuation, and general and life insurance.
You can access the forum at the below link:
https://www.afca.org.au/news/member-forum
AFCA Reflects on Progress Following Treasury’s November 2021 Independent Review
It has been two years since the Treasury released its review of AFCA. In its review, the Treasury found that AFCA was “performing well in a difficult operating environment and a changing regulatory landscape”, but also identified several areas that showed room for improvement, with most recommendations focused on enhancements to AFCA’s transparency, as well as improvements to the decision-making process.
The Treasury made 13 recommendations to AFCA. In its annual review and at its member forum, AFCA has reported that it is continuing to work on implementing these recommendations, with four successfully completed in the 2022 calendar year, and an additional two to be completed by the end of 2023.
The Treasury’s review is available here:
https://treasury.gov.au/publication/p2021-219154
Keep posted as we go deeper into these developments and reach out if any of the above impacts you or you have any questions.
The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such. It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only. You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.
