ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution—Transitional) Instrument 2019/965
About this compilation
Compilation No. 1
This is a compilation of ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution—Transitional) Instrument 2019/965 as in force on 27 June 2020. 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.
Contents
Part 1—Preliminary
1 Name of legislative instrument
3 Authority
4 Definitions
Part 2—Approval
5 Standards and requirements
Part 3—Application
6 Transitional
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history
Part 1—Preliminary
1 Name of legislative instrument
This is the ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution—Transitional) Instrument 2019/965.
3 Authority
This instrument is made under:
(a) subsection 11(4) of the Australian Securities and Investments Commission Act 2001 for the purposes of subparagraphs 912A(2)(a)(i) and 1017G(2)(a)(i) of the Corporations Act 2001; and
(b) subsection 12A(6) of the Australian Securities and Investments Commission Act 2001 for the purposes of:
(i) paragraph 47(1)(b) of the Retirement Savings Accounts Act 1997;
(ii) paragraph 101(1)(b) of the Superannuation Industry (Supervision) Act 1993;
(iii) subparagraph 47(1)(h)(i) of the National Consumer Credit Protection Act 2009;
(iv) subparagraph 47(1)(e)(i) of the National Consumer Credit Protection Act 2009 as notionally inserted by regulation 25E and Schedule 2 to the National Consumer Credit Protection Regulations 2010.
4 Definitions
In this instrument:
AFCA scheme means the external dispute resolution scheme for which an authorisation under Part 7.10A of the Corporations Act 2001 is in force.
approved deposit fund has the same meaning as in the SIS Act.
AS ISO 10002—2006 means Australian Standard AS ISO 10002—2006 known as Customer Satisfaction—Guidelines for complaints handling in organizations published by Standards Australia as in force as at 5 April 2006.
Corporations Act means the Corporations Act 2001.
Credit Act means the National Consumer Credit Protection Act 2009.
credit licensee means a person who holds an Australian credit licence.
financial firm means:
(a) a financial services licensee;
(b) a person to whom section 1017G of the Corporations Act applies;
(c) a credit licensee;
(d) an unlicensed carried over instrument lender;
(e) a trustee of a regulated superannuation fund or of an approved deposit fund;
(f) an RSA provider.
financial services licensee means a person who holds an Australian financial services licence.
regulated superannuation fund has the same meaning as in the SIS Act.
RSA Act means the Retirement Savings Account Act 1997.
RSA provider has the same meaning as in the RSA Act.
unlicensed carried over instrument lender has the meaning given by subsection 5(1) of the National Consumer Credit Protection Act 2009 as notionally inserted by regulation 25E and Schedule 2 to the National Consumer Credit Protection Regulations 2010.
Part 2—Approval
5 Standards and requirements
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—2006;
(b) the “Guiding principles” in section 4 of AS ISO 10002—2006;
(c) the following sections of AS ISO 10002—2006:
(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) except in relation to an unlicensed carried over instrument lender—the procedure must include adequate measures for informing complainants about the availability and accessibility of the AFCA scheme;
(e) if an unlicensed carried over instrument lender is a member of the AFCA scheme—the procedure must include adequate measures for informing complainants about the availability and accessibility of the scheme.
Part 3—Application
6 Transitional
This instrument applies in relation to a complaint received before 5 October 2021 by a financial firm.
Endnotes
Endnote 1—Instrument history
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
2019/965 | 26/9/2019 (see F2019L01274) | 27/9/2019 | |
2020/99 | 26/6/2020 (see F2020L00789) | 27/6/2020 | - |
Endnote 2—Amendment history
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Section 1 | am. 2020/99 |
Section 2 | rep. s48D LA |
Subsection 3(b) | rs. 2020/99 |
Section 4 | am. 2020/99 |
Section 6 | rs. 2020/99 |
Overview
The ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution—Transitional) Instrument 2019/965 was enacted to address the need for harmonising and standardising internal dispute resolution processes across financial services firms in Australia. This legislative instrument was made under the authority of the Australian Securities and Investments Commission Act 2001 and aims to ensure that financial firms, including credit licensees and financial services licensees, implement effective internal dispute resolution procedures that align with industry standards. The instrument specifies the standards and requirements for these procedures, ensuring that complaints are handled in a fair, efficient, and transparent manner. The policy objective of the instrument is to improve the quality of dispute resolution within financial firms, thereby enhancing consumer protection and confidence in the financial services sector.
This instrument applies to complaints received by financial firms before 5 October 2021. It provides a transitional framework to ensure that firms have adequate internal dispute resolution processes in place before the new standards and requirements come into effect. The instrument was prepared by the Australian Securities and Investments Commission and includes notes on the amendment history and instrument history, ensuring transparency and clarity for practitioners.
Scope and Application
The ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution—Transitional) Instrument 2019/965 applies to financial firms, including financial services licensees, credit licensees, trustees of regulated superannuation funds or approved deposit funds, and RSA providers, within the meaning of the respective acts. The instrument is made under the Australian Securities and Investments Commission Act 2001 and relates to internal dispute resolution procedures for complaints received before 5 October 2021. It sets specific standards and requirements for internal dispute resolution procedures, including adherence to the Australian Standard AS ISO 10002—2006, and mandates adequate measures for informing complainants about the availability and accessibility of the AFCA scheme. The instrument's provisions are designed to ensure that financial firms have effective internal dispute resolution mechanisms in place to handle complaints efficiently and effectively. The instrument also allows for the approval of specific standards and requirements through subordinate instruments, enabling further detail and refinement of the mandated procedures.
Key Provisions
The ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution—Transitional) Instrument 2019/965 (the Instrument) provides for the approval of internal dispute resolution (IDR) procedures for financial firms, including financial services licensees, credit licensees, trustees of regulated superannuation funds or approved deposit funds, and unlicensed carried over instrument lenders (collectively referred to as "financial firms") in relation to complaints received before 5 October 2021. The Instrument outlines the standards and requirements that IDR procedures must adhere to, ensuring a consistent and effective approach to handling complaints within financial firms. Key sections include the definition of a complaint under AS ISO 10002—2006 (section 4), the guiding principles for handling complaints (section 5), and specific sections of AS ISO 10002—2006 that must be incorporated into the IDR procedures (section 6). Additionally, the Instrument mandates that IDR procedures include adequate measures for informing complainants about the availability and accessibility of the AFCA scheme, unless the financial firm is an unlicensed carried over instrument lender that is a member of the AFCA scheme.
The Instrument imposes specific obligations and requirements on financial firms regarding their IDR procedures. These include ensuring that the procedure covers complaints as defined in AS ISO 10002—2006, incorporates the guiding principles outlined in section 4 of AS ISO 10002—2006, and includes certain sections of AS ISO 10002—2006 such as commitment, resources, collection of information, and analysis and evaluation of complaints. Furthermore, financial firms must implement measures to inform complainants about the availability and accessibility of the AFCA scheme, unless they are an unlicensed carried over instrument lender that is already a member of the AFCA scheme. Compliance with these standards and requirements is essential to maintain a fair and efficient IDR process for resolving disputes between financial firms and their customers.
The Instrument does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach within its provisions. However, breaches of the approved IDR standards and requirements could potentially lead to enforcement actions by the Australian Securities and Investments Commission (ASIC), which could include issuing infringement notices, seeking civil penalties, or taking legal action against the financial firm. The exact penalties for non-compliance would depend on the specific breach and the applicable legislation under which ASIC takes action. It is therefore crucial for financial firms to ensure their IDR procedures comply with the approved standards and requirements to avoid potential enforcement actions and maintain regulatory compliance.