AFCA is here. Is your business ready?

Alex Burke,  Senior Writer,  No More Practice Education

The Australian Financial Complaints Authority is up and running as of November 1.

AFCA is the consolidated complaints entity borne out of the Financial Ombusdman Service, the Superannuation Complaints Tribunal and the Credits and Investments Ombudsman. As ASIC explained, it represents the "single scheme for all financial services, credit and superannuation complaints," and has "significantly enhanced monetary limits for most consumer and small business complaints."

 

What are the new limits?

Under AFCA's charter, consumer and small business complaints "about most financial products and services with a value of up to $1 million" can be awarded compensation up to $500,000. Small business and primary producer complaints about credit facilities up to $5 million in value can be awarded up to $1 million (small business) and $2 million (primary producer).

Finally, superannuation complaints of unlimited value can be addressed by AFCA.

 

What do licensees need to do?

If you're an AFCA member

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