Authors: Katherine Hayes, Partner and Greg Stirling, Senior Associate
Since the Financial Services Royal Commission, there have been a number of changes to the regulation of the financial services sector. The Australian Financial Complaints Authority (AFCA) and the Australian Securities and Investments Commission (ASIC) have not been immune and have been awarded some additional powers which they will be able to start exercising later this year.
1. Publication of financial service providers’ names
AFCA will shortly be permitted to name financial institutions in its published determinations. Until now, AFCA, which in September 2018 replaced the Financial Ombudsman Service, the Credit and Investment Ombudsman and the Superannuation Complaints Tribunal, has anonymised financial institutions in its determinations.
This change follows AFCA’s public consultation on the issue, and allows consumer complainants to remain anonymised in all determinations. ASIC has stated that it approved the change to enhance transparency and accountability and help identify problematic conduct within the market, or products or services which are not performing as expected. In addition, ASIC says that financial service providers or products which are not causing problems should also benefit because they will be identified and recognised publicly. The changes are aimed at enhancing public confidence in the resolution of complaints.
AFCA will reportedly be shortly identifying exceptions to these rules where financial institutions would not be identified. A start date for the naming of financial institutions has not yet been set.
