26 September 2023

Finance cheats to be named

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The Australian Financial Complaints Authority (AFCA) is to begin naming financial firms in its published determinations after successfully applying to have its rules changed.

Chief Ombudsman and Chief Executive of AFCA, David Locke said the purpose of naming companies was to increase transparency in the financial sector and enhance consumer confidence.

“The changes come following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry,” Mr Locke said.

“AFCA undertook a public consultation and submitted an application to the Australian Securities and Investments Commission (ASIC) to change the AFCA rules.”

He said AFCA played an important public role and recognised that transparency in its data and decisions was essential to rebuild trust in the financial sector.

“We already publish decisions on our website, but we have been unable to name the financial firms involved,” Mr Locke said.

“We welcome ASIC’s approval to change our rules”

He said it was an important change, and the public would now be able to access increased information about the actions of financial firms.

In making its decision, ASIC noted that in its first six months, AFCA received 35,263 complaints.

It expected about 4,500 to 5,000 complaints to be finalised each year by way of determination.

“In approving this change, ASIC took into account stakeholder feedback to AFCA’s public consultation and the statutory approval criteria,” ASIC said.

“Consumers who are party to a complaint will continue to be anonymised.” it said.

AFCA’s David Locke said the Authority was working with ASIC to determine the start date for the naming of the financial firms.

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