ASIC grants additional time to update disclosure documents for AFCA

Super funds have been granted additional time to update disclosure documents with details of the Australian Financial Complaints Authority (AFCA).

AFCA will start dealing with complaints from 1 November 2018. The new external dispute resolution body replaces the SCT, CIO and FOS.

ASIC has announced that it has granted super funds and financial firms disclosure relief during the transition to AFCA. The transitional relief applies until 1 July 2019, which ASIC says will allow them time to update mandatory disclosure documents and periodic statements.

ASIC said a “range of measures” have been put in place to keep consumers informed of how to make a complaint during the transition to AFCA, including AFCA’s new website, the inclusion of AFCA’s details in ‘final response letters’ from financial firms, requirements to update financial firms’ communications, and arrangements to re-direct consumers from the former dispute resolution schemes to AFCA

ASIC said the disclosure relief meant that “financial firms will have until 1 July 2019 to update EDR details to refer to AFCA in mandatory disclosure documents, periodic statements and exit statements“, among other changes.

“ASIC will continue to work with all EDR scheme stakeholders to ensure that the transition to AFCA is as smooth as possible for both financial firms and consumers,” said the regulator.

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