Joint consumer submission on AFCA Bill 2017

Consumer advocates are very supportive of the move to new one-­stop shop external dispute resolution (EDR) scheme that implements the considered recommendations of the Ramsay Review. The new Australian Financial Complaints Authority (AFCA) can build on the success of the existing system for EDR, and extend the benefits of EDR to superannuation customers for the first time. This submission is broadly supportive of the legislation establishing AFCA but recommends some minor technical amendments to the Bill, including to:

• require an independent chair of the AFCA board;
• require AFCA to monitor and address systemic issues, in addition to referring such matters to regulators;
• require AFCA to refer certain matters to other relevant authorities or industry code monitoring committees;
• give AFCA power to compel information or documents;
• require membership for debt management firms including debt agreement administrators, and permit voluntary membership.