Over 50 financial services and credit licensees have had their licenses formally suspended or cancelled by the Australian Securities and Investments Commission (ASIC) after failing to obtain membership of the Australian Financial Complaints Authority (AFCA).
AFCA was formed last November to provide external dispute resolution for consumers with unresolved complaints. It went on to find 58 financial services licensees and 217 credit licensees had not obtained AFCA membership and could have been in breach of their licence conduct obligations.
The matter was referred to ASIC and 48 credit licensees and four financial services licences had their licences cancelled or suspended.
Some 50 financial services and 131 credit licensees obtained AFCA membership and the remainder voluntarily cancelled their licenses.
ASIC commissioner, Sean Hughes, said: “ASIC’s intervention means that consumers now have access to the independent dispute resolution scheme of AFCA if their complaints are not being properly considered by the financial services licensee or credit licensee.”
It said it would continue to work closely with AFCA to identify those who were not complying with their obligations.