Work ahead to transition to AFCA
The Fold Legal has warned that the transition from the Financial Ombudsman’s Service (FOS) to the Australian Financial Complaints Authority (AFCA) will involve “much work” for Australian Financial Services Licensees (AFSLs), cautioning that while licensees must have already joined AFCA the work required to transition across shouldn’t be underestimated.
Associate at the Fold Legal, Chris Deeble, advised that AFSLs and superannuation trustees would need to ensure that they had updated any documents or websites that referred to their previous external dispute bodies.
These could include disclosure documents, National Credit Code forms and notices, complaints information, and internal dispute resolution and final response letters, with timeframes for making any necessary changes varying depending on the document type.
AFSLs and trustees would also need to notify the Australian Securities and Investments Commission (ASIC) by 30 November, this year, with the deadline for becoming a member already passing on 21 September. The regulator would be receiving notifications from 1 November.
AUTHOR
Hannah Wootton
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
