Risk Regulatory Updates

AFCA rule changes forced by court

The Australian Financial Complaints Authority (AFCA) is to change a rule after the New South Wales Supreme Court ruled in a case that AFCA’s rules on jurisdiction over authorised representatives must be clearer. The case, DH Flinders v Australian Financial Complaints Authority, relates to AFCA’s ability to consider a complaint against a financial advice firm regarding the conduct of its corporate authorised representative, particularly when the conduct was without or not under authority.

The new rules, dictated by ASIC, are now the same for licensees in terms of their authorised representatives as set out in the Corporations Act and the National Consumer Credit Protection Act. The new rules come into play from 13 January 2021, with complaints made prior to this date assessed under the old rules.

AIOFP offering university course

The Association of Independently Owned Financial Professionals (AIOFP) with Western Sydney University are in discussions to develop a graduate diploma course for life insurance advisers. The course will be a stream of its existing approved financial planning graduate diploma course.