18 September 2019

The Australian Financial Complaints Authority (AFCA) has made submissions in response to ASIC consultations, as part of AFCA’s commitment to be a fair, ethical and trusted service that influences reform in the financial services sector.  

Unsolicited telephone sales of direct life insurance and consumer credit insurance

On 12 September 2019, AFCA made a submission to consultation paper 317 - Unsolicited telephone sales of direct life insurance and consumer credit insurance.

AFCA strongly supports ASIC’s proposal and welcomes it as a starting point to protecting consumers against predatory sales tactics and being sold unsuitable and inappropriate financial products.

AFCA notes that the proposal only captures unsolicited telephone sales made when general advice or no advice is given. We believe that the proposal should go further and prohibit all unsolicited attempts to sell to a consumer, not just telephone sales, and this should apply to all financial products.

Read AFCA’s full submission to ASIC consultation paper 317.

Find out more about the consultation on the ASIC website.

Internal dispute resolution: Update to RG 165

On 27 August 2019, AFCA made a submission to consultation paper 311 - Internal dispute resolution (IDR): Update to RG 165.

AFCA supports the initiative to update RG 165 and, in broad terms, supports the proposed approaches outlined in the consultation paper.

Generally, AFCA’s believes that:

  • IDR requirements should be consistent across financial firms
  • IDR standards should apply to all complaints
  • IDR requirements should be designed to fit together with External Dispute Resolutions (EDR) requirements
  • publication of IDR data should be coordinated with publication of EDR data to produce comprehensive, consumer friendly information about complaints.

 

Read AFCA’s full submission to ASIC consultation paper 311.

Find out more about the consultation on the ASIC website.