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EDR Transitional Relief

Friday 1 June 2018

The Australian Securities and Investments Commission (ASIC) indicated that they will provide transitional relief until July 2019.

The external dispute resolution scheme the Australian Financial Complaints Authority (AFCA), that is meant to be one stop shop, is one of the processes in place to help with some of the challenge sin the financial industry.

Earlier this year, the government announced the new appointments for the body that will start accepting complaints in November of this year.

“ASIC will continue to work with all EDR scheme stakeholders to ensure that the transition to AFCA is as smooth as possible for both financial firms and consumers,” the corporate regulator said.
The disclosure relief includes:

Financial firms will have until 1 July 2019 to update EDR details to refer to AFCA in mandatory disclosure documents, periodic statements and exit statements; and 

  • Financial firms will not have to issue significant event notifications under s1017B of the Corporations Act associated with the transition to AFCA.

  • Regulatory Guide 165 Licensing: Internal and external dispute resolution (RG 165) has also been amended to require information about predecessor schemes and AFCA to be provided to complainants from 21 September 2018.