Financial complaints: new authority

A new dispute resolution body will simplify the process of making a financial complaint.

Currently there are three dispute resolution bodies for financial complaints: the Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT).

The Australian Financial Complaints Authority (AFCA) will replace all three, getting rid of duplication and making it simple for anyone with a financial complaint.

AFCA will be based on an ombudsman model. This means that complainants must try and resolve their complaint with the financial firm they are involved with.

Financial firms will be required to be members of AFCA. AFCA's members will be contractually bound to comply with AFCA's operating rules. AFCA will be financed by contributions made by its members.

The Turnbull Government will appoint the Hon. Helen Coonan as the inaugural Chair of AFCA.

AFCA will start receiving disputes no later than 1 November 2018.