The Turnbull Government today welcomes the release by Dr Malcolm Edey of the Consultation Paper on the terms of reference, governance and funding arrangements for the Australian Financial Complaints Authority (AFCA), the new one-stop shop dispute resolution body for all financial disputes.
The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, said the Government is creating AFCA based on the expert advice of the review of external dispute resolution and complaints arrangements (Ramsay Review).
AFCA will commence from 1 July 2018 and will provide free, fast and binding dispute resolution for consumers and small businesses.
The Government has introduced legislation to establish AFCA into Parliament and has also created a Transition Team, chaired by former Reserve Bank Assistant Governor, Dr Malcolm Edey, to facilitate a smooth transition from the existing external dispute resolution framework to AFCA.
Dr Edey has established an Expert Reference Panel to draw on existing dispute resolution expertise and has engaged with industry and consumer stakeholders through a series of meetings and workshops, to ensure a wide range of views are taken into account in the establishment of AFCA.
Feedback from the Consultation Paper will provide the basis of Dr Edey's advice to the Minister on the authorisation of AFCA, including any conditions that should be imposed on authorisation.
"AFCA is a landmark reform that will overhaul how financial disputes are dealt with in Australia," Minister O'Dwyer said.
"I encourage all interested parties to engage with Dr Edey and the Transition Team to ensure that AFCA provides enhanced access to redress, while being accountable and transparent to both industry and consumers."
The Consultation paper is available on the Treasury website. Interested stakeholders are invited to comment. Submissions on this consultation will close on 20 November 2017.