In February 2018, the Australian Government established the Australian Financial Complaints Authority (AFCA) – an external dispute resolution (EDR) scheme, which will provide a single system to deal with complaints from individuals and small businesses in relation to financial services and products.
- It replaces the Financial Ombudsman Service, the Credit and Investments Ombudsmen and the Superannuation Complaints Tribunal , and will start receiving complaints from consumers from 1 November 2018.
- It will hear complaints such as those about inappropriate or incorrect advice from a financial adviser;
- complaints about an insurer’s decision to reject a claim; and
- complaints about the amount deemed to be payable under a superannuation death benefit.
- Importantly, small businesses which employ a larger number of employees are now able to apply, and significantly, there is no limit or cap for superannuation complaints, such as where tax has been withheld from a death benefit payment, or a Trustee has exercised the wrong discretion in payment as part of an Estate.
- For any related matters, contact us today. Of particular relevance may be businesses who wish to make a complaint or lodge legal action against any financial provider.