The Australian Financial Complaints Authority is consulting on its draft Approach to determining compensation in complaints involving Financial Advisers and Managed Investment Schemes.
The consultation will run from Monday 6 November 2023 until Friday 1 December 2023.
The Approach document sets out how AFCA considers:
- liability and compensation in relation to financial advice firms and Responsible Entities (REs) where the advice firm has provided advice on interests in a Managed Investment Scheme (MIS) including those MIS that have subsequently failed or become insolvent
- proportionate liability statutes in relation to complaints involving financial advisers and Managed Investment Schemes,
- its powers to join a party to a complaint if the party is an AFCA member, and
- fairness when apportioning loss in these complaints.
While the Approach document is new, the way AFCA handles these types of complaints, is not.
AFCA has developed a formal Approach document to support complainants and guide financial firms to better understand how we consider investment and advice complaints involving financial advisers and Managed Investment Schemes and assist in efficiently and effectively resolving these disputes.
Once finalised, the Approach document will also be applied internally by AFCA case managers and decision makers to ensure that AFCA is dealing with these complaints consistently.
Find out more about the consultation here.