ASIC warning to AFCA laggards

The resistance of some credit representatives to the establishment of the Australian Financial Complaints Authority (AFCA) appears to be manifesting in their tardiness in signing up to the new one-stop-shop complaints-handling authority.

The Australian Securities and Investments Commission (ASIC) revealed that while more than 35,000 financial firms have now joined the AFCA scheme, there are still 300 licensed financial firms who have failed to do so and most of them were previously members of the Credit and Investments Ombudsman Service.

Importantly, it was the Credit and Investments Ombudsman which, alongside a number of superannuation funds, most vigorously opposed being included in the Government’s one-stop-shop AFCA approach.

Related News:

ASIC said a number of credit representatives who were obliged to join the AFCA arrangements were also dragging their feet and warned that if licensees were not a member of the external dispute resolution scheme by 21 September, they were in breach of their license obligations.

It said that credit representatives were required to join AFC by 1 November and that their authorisation would become invalid and they would need to cease engaging in credit activities if they failed to do so.

ASIC said it was receiving regular membership updates from AFCA and was contacting firms which had not taken out AFCA membership or responded to AFCA communications.




Related Content

Sydney wealth firm sees licence suspended by ASIC

The Australian Securities and Investments Commission (ASIC) has suspended the licence of Sydney-based Australasia Wealth Services Management (ASWM) fo...Read more

Are there still things to hide in financial services?

People who are pushing back on the Australian Securities and Investments Commission (ASIC) over its tough new litigatory approach might be seeking to ...Read more

Lonsec makes strategic IMA planner offer

Research and ratings house, Lonsec is offering to acquire in-house managed portfolios from advice licensees in a move it says is aimed helping planner...Read more

Author

Comments

Comments

Here we go again. ASIC going after the small and defenceless targets. I applied for my AFCA membership well within the original, not extended, time frame. AFCA were extremely tardy in actioning my application. Before blaming thousands of Brokers, how about ASIC go and talk to AFCA and ask them why they are so slow to respond.

Add new comment