Complaints scheme given the nod
The Financial Services Complaints Resolution Scheme (FSCRS) has gained the approval of the Australian Securities and Investments Commission (ASIC) to oper-ate as an external complaints resolution scheme.
The Financial Services Complaints Resolution Scheme (FSCRS) has gained the approval of the Australian Securities and Investments Commission (ASIC) to oper-ate as an external complaints resolution scheme.
It has also been given approval to consider complaints from what it calls “respon-sible entities of managed investment schemes”, or fund managers. ASIC recently gave the same approval to the Financial Industry Complaints Service (FICS).
The FSCRS has been operating for five years hearing complaints for its financial planning members but has recently extended the service to stock brokers and fund managers. The organisation was born out of the Financial Planning Association (FPA).
ASIC’s approval, however, is conditional on the FSCRS gaining full independence from the FPA by the end of February.
A spokesperson for FSCRS told Money Management that the processes for legally separating the FSCRS from the FPA were well under way and would “necessitate a review of FSCRS membership fees and operating expenses to ensure it was finan-cially viable as a complaints scheme”.
The group has brought in accounting firm KPMG to advise it on cost and pricing structures, however, apart from an amended fee for stockbroker members, there will be “no imminent changing of fees” for the scheme until July next year.
As part of the ASIC approval process, the FSCRS will also extend its complaints service to include claims of up to $100,000, up from $50,000. This will apply to responsible entities and licensees providing retail investment advice and will bring the FSCRS into line with FICS. The spokesperson says FSCRS manager Nicole Arendsen is in discussions with insurers over the insurance requirements resulting from this.
Arendsen said the FSCRS will work with other industry schemes. “As in the past, we will work with other industry complaints resolution schemes, such as the Fi-nancial Industry Complaints Service (FICS), to serve both consumers and our members and to support the compliance requirements of the financial services in-dustry and the rights of consumers.”
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