ASIC targets licensees without AFCA membership

The firms had previously held external dispute membership with previous schemes, failing to join AFCA since it had established in November.

Following ASIC’s intervention, 50 of the financial services licensees subsequently sought AFCA membership, four voluntarily cancelled their licences and a further four saw their licences cancelled or suspended by ASIC. 

Out of 217 credit licensees without AFCA membership, 131 obtained membership, 38 voluntarily cancelled their licences and 48 were suspended or cancelled by ASIC. 

“ASIC has taken proactive measures to protect consumers from those few financial services licensee and credit licensees who were not complying with the obligations of their licence by being a member of AFCA,” ASIC commissioner Sean Hughes said.

“ASIC’s intervention means that consumers now have access to the independent dispute resolution scheme of AFCA if their complaints are not being properly considered by the financial services licensee or credit licensee.”

Last month, ASIC approved changes to AFCA rules allowing the body to handle complaints dating back to 2008.