Budget confirms creation of Financial Complaints Authority
The Federal Government has used the 2017/18 Budget to confirm its intention of moving to a single external dispute resolution (EDR) body covering the financial services industry – the Financial Complaints Authority (FCA).
The move will spell the end of the Superannuation Complaints Tribunal (SCT) and the creation of an ombudsman approach similar to the Financial Ombudsman Service (FOS).
The decision has caused consternation in the superannuation industry with Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck pointing out that the SCT had served the industry and superannuation fund members. She noted that while the AIST supported a stand-alone super complaints tribunal, it was now critical that the new body – the Financial Complaints Authority – retain the protections currently present in the SCT powers.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.