ASIC speeding up licensee complaints process
A lawyer has advised licensees to get ready to change their dispute resolution systems, with the corporate regulator now requiring them to act quicker.
Recent changes to Regulatory Guide 165 means Australian Financial Services Licensees (AFSLs) will have to acknowledge client complaints immediately - regardless of the form in which they are given - and resolve problems in tighter timeframes, according to Charmian Holmes, solicitor director of The Fold Legal.
Holmes said AFSLs needed to adjust their current internal dispute resolution system for retail clients in order to comply with the new requirements.
The changes, introduced by the Australian Securities and Investments Commission (ASIC), will require licensees to send a written acknowledgement of the client’s complaint as soon as it is received.
“The licensee can’t wait 24-48 hours to acknowledge the complaint, it must be immediate,” she said.
“Licensees also cannot force the client to put a complaint in writing. If the current system does not comply with these requirements, the system has to be changed.”
According to Holmes, if the complaint can be resolved within five business days of initial receipt, there is no need for full assessment and investigation except for hardship claims, declined insurance claims or disputes about the value of an insurance claim.
“The outcome and decision must be delivered to the client within 45 days of the initial complaint,” she said.
“Licensees cannot extend this to take account of new information or information they can’t collect from the client, but they do have 90 days to respond to superannuation or traditional trustee services complaints.”
If an AFSL is unable to give a response within the 45-day period, it must communicate the reasons for the delay to the client and the complaint must be directed to an external dispute resolution scheme, Holmes added.
Recommended for you
A former Northern Territory financial adviser has received a seven-year ban from ASIC, having been convicted of supplying dangerous drugs and receiving or possessing the proceeds of their sale.
Both Bain Capital and CC Capital have made revised bids for Insignia Financial after completing a period of due diligence.
The advice industry has reached triple-digit gains for the calendar year to date, with two licensees seeing gains of five during the week.
Targeting market leadership in digital advice, Bravura’s digital solutions are now available to over 6 million superannuation fund members.
