The Australian Securities and Investments Commission (ASIC) has given the go-ahead to a new rule that will enable the Australian Financial Complaints Authority (AFCA) to name financial firms in its published determinations.
The move follows revelations of wrongdoings at several financial services firms in the country during the royal commission inquiry.
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The goal is to aid AFCA’s decision-making process and increase the transparency and accountability of financial firms.
ASIC believes that “naming firms in determinations can help identify conduct or market problems within firms or affecting specific products or services, as well as highlighting where firms have done the right thing”.
The names of those making the complaints will be kept anonymised in determinations.
As one of the exceptions, AFCA will refrain from naming where it could lead to confidential data exposure regarding the firm’s policies.
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By GlobalDataThe dispute resolution body will release an updated guideline, which would reveal more of such exceptions.
Commenting on the move, AFCA chief ombudsman and CEO David Locke said: “This is an important change, and the public will now be able to access increased information about the actions of financial firms.”
AFCA got 35,263 complaints in the first six months since inception.
It expects to settle nearly 5,000 disputes on an annual basis by way of determination.
At present, AFCA is working alongside ASIC to decide when the new rule would be effective.
