5 March 2018

ASIC consults on its oversight of AFCA

The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today welcomed the Australian Securities and Investments Commission’s (ASIC) public consultation on draft regulatory guidance on its oversight of the Australian Financial Complaints Authority (AFCA).

“ASIC’s draft guidance is another important step in establishing the AFCA — a new one-stop shop for external dispute resolution in the Australian financial system,” Minister O’Dwyer said.

“We are putting the governance processes in place so the AFCA is ready to start receiving consumer and small business disputes no later than 1 November 2018.”

Parliament passed legislation to establish the AFCA scheme on 14 February 2018. Under the legislation, ASIC will have a new directions power that will strengthen its oversight of the new external dispute resolution scheme.

“The draft regulatory guidance sets out ASIC’s approach and I encourage all stakeholders to be involved in this important consultation process,” Minister O’Dwyer continued.

The draft regulatory guidance Regulatory Guide 139, Oversight of AFCA, will be open for public consultation until 6 April 2018.

The updated RG 139 will be finalised and published by the time AFCA commences. ASIC also invites stakeholder views on the need for any transitional relief from external dispute resolution disclosure obligations.

The consultation paper and draft regulatory guide is available on the ASIC website.