The Australian Securities and Investments Commission (ASIC) has launched a consultation program on new standards to apply to financial firms handling complaints from consumers and small business.
Deputy Chair of ASIC, Karen Chester said the proposed standards, which included new mandatory data reporting, would improve the way consumer complaints were dealt with across the financial system and make firms’ complaints-handling performance transparent.
“Financial firms will be required by ASIC to meet the new standards when they deal with consumer complaints through their Internal Dispute Resolution (IDR) arrangements,” Ms Chester said.
“IDR is the first step in the complaints handling process — an opportunity for the financial firm to investigate, resolve or redress a problem before a consumer or small business can escalate their complaint to the Australian Financial Complaints Authority (AFCA).”
She said all financial firms (including banks, insurers, credit providers, advisors and most superannuation funds) were required by legislation to have an IDR system that met ASIC’s standards.
“It is widely acknowledged there is room for much improvement when it comes to handling consumer complaints in our financial system,” Ms Chester said.
“Consumers expect and need a fair, timely and effective way to have their complaints dealt with, and to be provided with redress where appropriate.”
She said that with the benefit of broad consultation, ASIC’s new standards would lift the complaints handling performance of firms and ultimately consumer outcomes and fairness of the financial system.
Ms Chester said ASIC sought public input on the consultation documents, with the deadline for comments 9 August.
ASIC’s 145-page consultation report can be accessed at this PS News link.
