On 26 August 2019, ASIC issued a media release in relation to changes it has approved to the AFCA Rules which give AFCA the power “to name financial firms in published determinations”. According to ASIC, “naming firms in determinations can help identify conduct or market problems…as well as highlighting where firms have done the right thing. It will also enhance transparency and accountability of firms’ performance in complaints handling and of AFCA’s own decision-making”.
AFCA will update its operational guidelines to “set out examples of the circumstances in which a determination naming a financial firm would not be published…[such as] where naming may expose confidential information about a firm’s systems or policies”. ASIC advised that other parties to a complaint will continue to be anonymous.
AFCA is working with ASIC to determine the start date for the naming of financial firms.
This article was written by Matthew Harding, Partner and Sylvia Quang, Special Counsel.
