FOS / AFCA TRANSITION INVOLVES MUCH WORK FOR AFS LICENSEES.
By now, all credit and financial services licensees, and superannuation trustees must have joined AFCA. But don’t overlook the additional work required to effectively transition from your existing external dispute body to AFCA by 1 November 2018.
The two key things you need to do are:
#1. Update documents and your website to refer to AFCA – Any documents or information on your website that refers to CIO, FOS or the SCT
need to be updated.
Different timeframes apply to various types of documents:
- Disclosure documents such as FSGs, PDSs and Credit Guides can refer to FOS/CIO from 21 September 2018 to 31 October 2018. By 1 July
2019 they must refer to AFCA.
- National Credit Code forms i.e. the ‘things you should know about’ forms for credit contracts, guarantees and leases i.e. Form 5,
9 and 17 must be updated by 1 July 2019 (provided you update your broader communications about how to complain with AFCA’s details by 1 November
- Other National Credit Code forms and notices e.g. default notices, must be updated with AFCA’s details by 1 November 2018.
- Complaints information on your website, complaints policy or in brochures can give details of FOS/CIO/SCT from 21 September to 31
October 2018, but must be updated with AFCA’s details by 1 November.
- IDR delay and final response letters must refer to both FOS/CIO/SCT and AFCA from 21 September 2018 to 31 October 2018. By
1 February 2019, these letters must only refer to AFCA.
#2. Notify your AFCA membership details to ASIC – You should have been a member of AFCA by 21 September 2018. You will be able to notify
ASIC about your membership between 1 and 30 November 2018. Diarise this, so you don’t forget it.
Yes, it’s complicated, but there’s a helpful table on AFCA’s website – it sets out the timeframes and provides AFCA’s preferred disclosures wordings.
Do seek legal advice if you’re unsure. We’d be happy to help.
Author: Chris Deeble