Broker News

New internal dispute resolution guidance: ASIC

The Australian Securities and Investments Commission (ASIC) announced it has issued new regulatory guidance in an effort to make it easier to settle simple disputes internally with customers. The guidance is for financial services licensees, credit licensees and some other financial services providers.

“Consumer credit and financial industry participants (for example, banks, credit unions, insurers, financial planners, stockbrokers, insurance brokers and mortgage brokers) will have reduced paperwork obligations where they quickly resolve complaints at the IDR process,” the regulator says.

The new guidance details IDR and external dispute resolution procedures for customers with loans from organisations that make or buy loans or leases and repackage them to sell to investors.

“You should familiarise yourself with the guidance if you, or your business, is involved in securitisation or securitisation products, or you are a consumer credit representative for a firm or entity that is involved in securitisation,” ASIC says.

It also recommends businesses read:

  • the media release from ASIC for a summary, and
  • the guidance (Regulatory Guide 165 Licensing: internal and external dispute resolution (RG 165) and Regulatory Guide 139 Approval and oversight of external dispute resolution schemes (RG 139)

ASIC says for the period 1 July 2010 to 14 February 2011, it has received 6872 applications, accepted 6097 applications and finalised and issued 4331 licences.

Published on: Friday, February 18, 2011

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