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FOS welcomes the Government’s announcement of the new one stop shop financial services dispute resolution body

10 May 2017, 07:03 AM

FOS looks forward to playing its part in implementing the Government’s new single, independent financial services dispute resolution body.

The Government’s announcement of a new one-stop shop is in response to the recommendations of the Ramsay Review final report, with the new single scheme to be known as the Australian Financial Complaints Authority (AFCA), to be operational by 1 July 2018.

‘The proposed single body for financial and superannuation disputes based on the key features of the industry ombudsman model will simplify, strengthen and increase access to free external dispute resolution for consumers and small businesses,’ said FOS Chairman, Professor Michael Lavarch AO. 

FOS also supports the proposed increase in claim and compensation limits for the new one stop shop.

‘This will enable more Australians, including those involved in small business, to obtain access to justice by being able to bring their dispute to a single, independent alternative dispute resolution body rather than having to navigate multiple schemes or go to court,’ said FOS Chief Ombudsman, Shane Tregillis.

The changes will ensure that Australia remains at the forefront of innovation in alternative dispute resolution in the financial sector. The Ramsay Panel report makes a compelling case for change to enhance outcomes for consumers, small businesses and the broader community.

FOS also supports other reforms designed to prevent consumer disputes arising in the first place by ensuring that consumers are treated fairly in all their dealings with financial sector firms.

FOS looks forward to working with all stakeholders in the implementation of the new single body.

‘We also look forward to the Ramsay Review recommendations on the establishment and design of a compensation scheme of last resort, which are due by 30 June this year,’ added Shane Tregillis. 

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