Proposed Internal Dispute Resolution (IDR) Reporting Requirements
Since the Ramsay Review commenced in 2016, there has been significant progress toward a new framework for External Dispute Resolution (EDR) in Australia. The new framework will include the establishment of the Australian Financial Complaints Authority (AFCA), which will become a ‘one stop shop’ for the resolution of financial complaints.
The overhaul of the EDR landscape is not breaking news. However, EDR is not the only part of the existing dispute resolution framework that may change.
The Treasury Laws Amendment (Putting Consumers First – Establishment of the Australian Financial Complaints Authority) Bill 2017 deals not only with a number of matters relevant to the establishment of AFCA, but also proposes an enhanced Internal Dispute Resolution (IDR) framework.
If the Bill is passed, a range of financial services businesses will need to report their IDR activities to ASIC in accordance with ASIC requirements. ASIC would have the power to determine the content and form of IDR reporting, and would be able to publish the reported information at the aggregate and firm level. The explanatory material accompanying the Bill acknowledges this is likely to result in additional compliance costs for businesses.
For more information, please speak to one of our team from our Melbourne or Sydney offices.
Author: Zoe Higgins (Special Counsel)