26 July 2017

Overhauling the dispute resolution framework

The Turnbull Government is continuing to deliver on its commitment to overhaul the dispute resolution framework for financial services in Australia with the creation of a transition team to lead the establishment of the Australian Financial Complaints Authority (AFCA).

The transition team has been tasked with ensuring that AFCA, the new one-stop-shop for all financial and superannuation disputes, is operational by 1 July 2018, so that consumers and small businesses get the practical benefits of free, fast, fair and binding dispute resolution.

The transition team will advise the Government on AFCA’s terms of reference, governance and funding arrangements. It will also make recommendations on the authorisation process for AFCA and the transitional arrangements required to appropriately settle the cases currently before the three existing schemes.

The Government has appointed Dr Malcolm Edey, the former Assistant Governor (Financial System) of the Reserve Bank of Australia (RBA) as the Chairman of the transition team. Dr Edey is widely respected both internationally and domestically for his extensive knowledge in a broad range of economic fields. Dr Edey has been a member of the RBA’s senior policy committees and was Deputy Chairman of the Payments System Board.

Once legislation to establish the AFCA has passed the Parliament, the focus of the transition team will shift to overseeing the operational transition from the existing schemes to AFCA.

The transition team will consult extensively with industry and consumer stakeholders, as well as the Financial Ombudsman Service, Credit and Investments Ombudsman and Superannuation Complaints Tribunal.

Dr Edey will be supported by a team located in Treasury that will draw on private sector expertise as required.

Queries regarding the transition team can be directed to AFCA@treasury.gov.au.