AFCA has also released updated Operational Guidelines which give further guidance on how AFCA will deal with legacy complaints.
relates to a compulsory member of the AFCA scheme who is a member of the AFCA scheme at the time the complaint is made; is not an excluded complaint; and is made during the lodgment period,1 July 2019 to 30 June 2020.
The AFCA Board will continue to engage with the existing dispute resolution bodies to bring about a smooth transition to AFCA for consumers and financial firms.
I would like to thank Dr Edey, Chair of the AFCA Transition Team, for his dedication and expertise, and for the extensive consultation he and the Team have undertaken with industry and consumer groups, said Minister ODwyer.
Members of the Joint Working Group were part of the company that submitted the application to operate the AFCA scheme.
This is a step in the right direction as AFCA currently only takes complaints going back six years, Ms Carnell said.
From 1 July 2019, small businesses with complaints about loans under $5 million, going back to 1 January 2008 and who havent had their case heard by the Financial Ombudsman Service or a court, will have one year to apply to AFCA to review their case.
Once legislation to establish the AFCA
has passed the Parliament, the focus of the transition team will shift to overseeing the operational transition from the existing schemes to AFCA
Critically, AFCAs monetary limit of $1 million and compensation cap of $500,000, which is almost double the existing limits, will significantly enhance access to redress for consumers and small businesses who wrongfully suffer losses.
Strengthened governance the Bill allows the Minister to appoint a minority of the AFCA board on its establishment, including the independent chair.
AFCA will consolidate the existing Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT).
Ms Carnell said the higher compensation cap should incentivise banks to resolve disputes through internal processes before progressing to the AFCA.