THE HON JOSH FRYDENBERG MP
20 February 2019
TAKING ACTION ON THE BANKING, SUPERANNUATION & FINANCIAL SERVICES ROYAL COMMISSION
GOING FURTHER BY REQUIRING AFCA TO EXTEND ITS REMIT
The Coalition Government has extended the Australian Financial Complaints Authority’s (AFCA) remit to consider financial complaints dating back to 1 January 2008, providing expanded access to redress for consumers and small businesses harmed by financial misconduct.
The Royal Commission considered cases of financial misconduct dating back to 1 January 2008. As a result of today’s direction, AFCA’s remit will be expanded to enable them to review eligible complaints over the same period.
AFCA will consider eligible complaints between 1 July 2019 and 30 June 2020.
The Government established AFCA – a one-stop-shop for external dispute resolution – to enable more consumers and small businesses to access a free, fast and binding service for financial complaints, whether they relate to banking, superannuation, insurance or financial advice.
As a result of this direction, AFCA will be able to consider disputes dating back to 1 January 2008 that have not previously been heard and which fall within AFCA’s current monetary limits and compensation thresholds.
Current compensation thresholds are:
$500,000 for consumers;
$1 million for small businesses; and
$2 million for primary producers.
To give effect to the direction, AFCA will now consult on updating its rules so that it is in a position to begin receiving complaints under its expanded remit from 1 July 2019.
The Coalition Government is taking action on all 76 recommendations contained in the Royal Commission’s Final Report and, in a number of important areas such as expanding AFCA’s remit, is going further.
Restoring trust in Australia’s financial system is part of the Coalition Government’s plan for a stronger economy.