The final report of the Department of the Treasury’s review of the Australian Financial Complaints Authority (AFCA) has found the fledgling Authority to be performing well in a difficult and changing regulatory environment.
In a statement, Treasury said the Review had provided an opportunity to seek feedback on the AFCA’s operation in its establishment phase.
Treasury said the main consideration was whether changes could be made to ensure the scheme was appropriately calibrated and operating effectively within the existing framework, rather than reopening the fundamental settings.
“The Review has considered submissions received from current and former complainants, financial firms, consumer advocacy organisations, industry bodies and others, as well as detailed data on the AFCA’s operations,” it said.
“It has also benefited from an independent expert assessment of selected case studies.”
Treasury said that, in considering the submissions and information before it, the Review had taken an evidence-based approach and focused on whether there was evidence of systemic problems in the AFCA’s performance.
“The Review found that since its establishment in 2018, the AFCA had successfully brought together the three predecessor schemes — the Financial Ombudsman Service, the Credit and Investments Ombudsman, and the Superannuation Complaints Tribunal,” it said.
“This has produced an effective dispute resolution service for consumers and small businesses.”
Treasury cautioned that, while the Review was an endorsement of the AFCA’s performance in its establishment phase, it would need to continue to develop and improve its processes as it consolidated its place in the financial system.
The Review made 14 recommendations, most focussing on enhancements to the AFCA’s transparency towards parties to a complaint, and improvements to the decision-making processes.
The findings were welcomed by Chief Ombudsman and Chief Executive Officer of the AFCA, David Locke.
“Overall, this is a very positive report card, particularly for an organisation barely three years old,” Mr Locke said.
The 108-page Review Australian Financial Complaints Authority Report can be accessed at this PS News link.
