ASIC Class Order [CO 10/250]
About this compilation
Compilation No. 1
This is a compilation of ASIC Class Order [CO 10/250] as in force on 26 October 2018. It includes any commenced amendment affecting the legislative instrument to that date.
This compilation was prepared by the Australian Securities and Investments Commission.
The notes at the end of this compilation (the endnotes) include information
about amending instruments and the amendment history of each amended provision.
Australian Securities and Investments Commission
National Consumer Credit Protection Act 2009 — Subparagraph 47(1)(h)(i) — Approval
Enabling legislation
1. The Australian Securities and Investments Commission (ASIC) makes this instrument for the purposes of subparagraph 47(1)(h)(i) of the National Consumer Credit Protection Act 2009 (the Act).
Title
2. This instrument is ASIC Class Order [CO 10/250].
Commencement
3. This instrument commences on the day it is registered under the Legislative Instruments Act 2003.
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
Approval
4. ASIC approves the following standards and requirements in relation to an internal dispute resolution procedure:
(a) the procedure covers a “complaint” as defined in AS ISO 10002;
(b) the “Guiding principles” in section 4 of AS ISO 10002;
(c) the following sections of AS ISO 10002:
(i) section 5.1—Commitment;
(ii) section 6.4—Resources;
(iii) section 8.1—Collection of Information;
(iv) section 8.2—Analysis and evaluation of complaints;
(d) the procedure must include adequate measures for informing complainants about the availability and accessibility of the AFCA scheme.
Interpretation
5. In this instrument:
AS ISO 10002 means Australian Standard AS ISO 10002 known as Complaints Handling published by Standards Australia as in force as at 5 April 2006.
Notes to ASIC Class Order [CO 10/250]
Note 1
ASIC Class Order [CO 10/250] (in force under s47(1)(h)(i) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the tables below.
Table of Instruments
Instrument number | Date of making or FRL registration | Date of commencement | Application, saving or transitional provisions |
[CO 10/250] | 7/5/2010 (see F2010L01195) | 7/5/2010 | |
2018/937 | 25/10/2018 (see F2018L01466) | Sch 1: 26/10/2018
Sch 2: 26/10/2018
| Applies on and after 1/11/2018 Applies on and after 1/11/2018 |
Table of Amendments
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Subpara 4(d)....... | am. 2018/937 Sch 1 and 2018/937 Sch 2 |
Para 5 (definition of external dispute resolution scheme) |
rs. 2018/937
|
Overview
The ASIC Class Order [CO 10/250] was enacted in 2010 to address a gap in the regulation of internal dispute resolution (IDR) processes within financial services firms, particularly in relation to credit providers. This legislative instrument was introduced under the National Consumer Credit Protection Act 2009 by the Australian Securities and Investments Commission (ASIC), with the primary policy objective of ensuring that financial services firms maintain an effective and compliant IDR process. This approach was aimed at enhancing consumer protection by ensuring that consumers have access to a fair, efficient, and transparent means of resolving complaints against credit providers. The Class Order sets out specific standards and requirements for IDR procedures, including adherence to certain sections of the Australian Standard AS ISO 10002, which provides guidelines for handling customer complaints. The order also mandates that firms inform their customers about the availability and accessibility of external dispute resolution schemes, such as those offered by the Australian Financial Complaints Authority (AFCA).
Scope and Application
The ASIC Class Order [CO 10/250], which is in force under subparagraph 47(1)(h)(i) of the National Consumer Credit Protection Act 2009, applies to internal dispute resolution procedures within the context of consumer credit activities. This legislative instrument applies to entities and persons involved in the provision of credit services, ensuring that they comply with specified standards and requirements as outlined in the Australian Standard AS ISO 10002. These requirements include the definition of a complaint, guiding principles for handling complaints, and specific sections relating to commitment, resources, and information collection and analysis. Additionally, the procedure must ensure that complainants are informed about the availability and accessibility of external dispute resolution schemes, such as the Australian Financial Complaints Authority (AFCA). This Class Order has a Commonwealth jurisdictional reach, applying nationally, and its application is further refined through subordinate instruments, which may amend or supplement the initial provisions as necessary. Any exclusions or exemptions are not explicitly stated in the text but would typically be detailed in the amending instruments or in the notes accompanying the compilation.
Key Provisions
The ASIC Class Order [CO 10/250] sets forth the standards and requirements for internal dispute resolution procedures under the National Consumer Credit Protection Act 2009. Specifically, section 4(a) mandates that the internal dispute resolution procedure must cover a "complaint" as defined in AS ISO 10002. Section 4(b) requires adherence to the "Guiding principles" outlined in section 4 of AS ISO 10002. Additionally, sections 4(c)(i) to (iv) of the Class Order specify that certain sections of AS ISO 10002 must be included, namely section 5.1—Commitment, section 6.4—Resources, section 8.1—Collection of Information, and section 8.2—Analysis and Evaluation of Complaints. The procedure must also include measures to inform complainants about the availability and accessibility of the AFCA scheme, as per section 4(d).
Entities governed by this Class Order are obligated to implement an internal dispute resolution procedure that meets the criteria set out in the ASIC Class Order [CO 10/250]. This includes ensuring that the procedure covers complaints as defined by AS ISO 10002, adheres to the guiding principles, and includes the specified sections from AS ISO 10002. Furthermore, entities must take adequate steps to inform complainants about the availability and accessibility of the AFCA scheme as part of their internal dispute resolution process.
The Act does not explicitly state specific offences, penalties, or consequences for breaches of the Class Order. However, non-compliance with the requirements may result in enforcement actions by ASIC. The potential consequences may include corrective measures, financial penalties, or other regulatory actions as deemed appropriate by ASIC. While the Class Order does not specify maximum penalties, breaches of related legislative provisions under the National Consumer Credit Protection Act 2009 can lead to significant penalties, including substantial fines and, in severe cases, criminal charges.