AFCA to name and shame from October

The Australian Financial Complaints Authority (AFCA) will begin naming firms in its determinations and start exposing perpetrators from 1 October.

The rules, which were approved by ASIC in August, will allow AFCA to publish the names of financial firms in all determinations.

Previously, the names of companies involved in financial services, super and credit complaints had not been made public. 

ASIC approved the rule reform after receiving stakeholder feedback and considering statutory approval criteria, saying revealing firms in determinations could help identify conduct or market problems as well as rewarding good behaviour. 

In its first six months, AFCA received 35,263 complaints, with up to 5,000 to be finalised each year by way of determination.

Since forming in November last year, AFCA has made changes to its rules including expanding its jurisdiction to include complaints against financial firms dating back to 2008.

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Meanwhile, in other markets firms have been named by consumer rights bodies – the UK Financial Ombudsman Service has been naming firms in published determinations since 2013. 

The updated rules and organisational guidelines have been published on the AFCA website.

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