The Australian Financial Complaints Authority (AFCA) opening for business as of Thursday 1 November 2018. This is the new one-stop shop for financial dispute resolution, delivering free, fast and binding services for all financial complaints, whether they be related to banks, credit providers, insurance companies or superannuation funds.
AFCA will replace the Financial Ombudsman Service (FOS) and Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT) and will have a significantly higher jurisdiction and compensation limits.
- AFCA will be able to hear consumer complaints where the value of the dispute is less than $1 million and will be able to award compensation of up to $500,000. This will be almost double the exiting limits of FOS and CIO.
- In the case of small business credit complaints, a small business will be able to have their complaint heard where it relates to a credit facility of less than $5 million and will be eligible for compensation of up to $1 million. This will be almost triple the existing limits of FOS and CIO.
- In the case of a small business primary production dispute, AFCA will be able to award compensation of up to $2 million.
- AFCA will retain an unlimited monetary jurisdiction for superannuation complaints (though SMSFs still can’t access this service).
See further the AFCA website at https://www.afca.org.au.
FJM 16.11.18
[Treasury website: Ministers’ Media Release; LTN 210, 31/10/18; Tax Month – November 2018]
CPD questions (answers available)
- From what date was AFCA open?
- How many previous agencies does it replace?
- Is the SCT one of them?
- Were the jurisdiction and compensation limits increased (as part of this change)?
- What is the monetary jurisdiction limit for the SCT?
- Does AFCA now have jurisdiction to hear superannuation complaints in relation to SMSFs?
