Consultation on AFCA’s draft Approach to determining compensation in complaints against Financial Advice Firms where the Responsible Entity of a Managed Investment Scheme has become insolvent, is now closed.
The public consultation ran from Monday 6 November to Friday 1 December 2023.
AFCA would like to thank stakeholders for a constructive and cooperative consultation process. AFCA has now published the final Approach document and consultation feedback report, outlining how we responded to formal submissions and stakeholder feedback.
About the Approach
AFCA’s Approach documents help complainants and financial firms better understand how AFCA might approach some common issues and complaint types, and how we reach decisions.
The AFCA Approach to determining compensation in complaints against Financial Advice Firms where the Responsible Entity of a Managed Investment Scheme has become insolvent complements the existing AFCA Approach to calculating financial loss in financial advice complaints, and was drafted in response to requests from stakeholders in the context of the passing of legislation for a Compensation Scheme of Last Resort (CSLR).
The purpose of the additional Approach document is to clarify for financial firms and complainants how AFCA approaches liability and loss when a financial advice firm is found to have breached its obligations to the complainant in circumstances where the RE of a MIS has become insolvent.
The final Approach document and consultation feedback report
The AFCA Approach to determining compensation in complaints against Financial Advice Firms where the Responsible Entity of a Managed Investment Scheme has become insolvent has now been published.
We have also published a consultation feedback report outlining how we responded to formal submissions and stakeholder feedback.
Formal submissions
We received a total of five formal written submissions, including four non-confidential submissions.
