Extended dispute resolution time for trustee companies
Trustee companies will have more time to deal with disputes following the Australian Securities and Investment Commission’s (ASIC’s) decision to update the complaints process.
From 1 January, 2012, traditional services businesses will have a maximum of 90 days to deal with complaints at an internal dispute resolution (IDR) level.
Within this extended timeframe, trustee companies must give a final response or give reason for the delay and outline the complainant’s right to use an approved external dispute resolution (EDR) system, such as the Financial Ombudsman Service.
According to ASIC, this longer timeframe will enable traditional services businesses to identify and contact other beneficiaries that may have an interest in the outcome of the complaint at IDR.
The changes to EDR schemes include a cap on the value of the claim and the maximum award compensation.
From January 2012, schemes must handle a complaint if the value is less than $500,000, and schemes may award compensation up to $280,000.
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