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<\/a>It says the model minimises the cross-subsidisation across sectors that was occurring under the interim model put in place at AFCA\u2019s inception in 2018, \u201c\u2026by considering both the volume of complaints registered for a firm along with the time taken to resolve them.\u201d<\/p>\n
The new model includes a single registration fee and a simplified complaints fee structure. All members qualify for five free complaints a year.<\/p>\n
\u201cOverall, 95% of licensed financial firm members of the AFCA external dispute resolution scheme will pay only their annual registration fee, which has been set at $375.55 for the coming financial year,\u201d the authority says.<\/p>\n
Among authorised credit representatives, 99.9% will pay $65.98 annually \u2013 steady with their annual membership levy for the past year while the superannuation levy has been abolished and super funds have been brought under the same fee structure as other scheme members \u2013 with a positive or neutral impact for most.<\/p>\n
With regard to the consultation AFCA\u2019s Chief Ombudsman and Chief Executive Officer, David Locke<\/strong> says the feedback it received was overwhelmingly positive.<\/p>\n \u201cMembers welcomed the fact the model rewards good complaints resolution performance, and that it apportions fees fairly based on use of AFCA\u2019s services.<\/p>\n …this is a fair, transparent and equitable funding model…<\/p><\/blockquote>\n He says this is a fair, transparent and equitable funding model. \u201cUltimately, firms have control over the fees they pay by taking a resolution mindset when managing complaints.\u201d<\/p>\n AFCA\u2019s consultation process included more than 60 meetings with peak bodies and members likely to experience a greater impact, five webinars open to all member firms, and the delivery of 11,000 individual, tailored impact assessments to financial firms.<\/p>\n Locke thanked AFCA members and the peak bodies for their engagement with the consultation process. \u201cTheir feedback helped us improve and refine the model,\u201d he says.<\/p>\n Instalments Being Introduced Above a Threshold Amount<\/strong><\/p>\n The feedback led to instalments being introduced for member payments above a threshold amount, and no fee being payable for complaints found, upon initial assessment, to be outside AFCA\u2019s jurisdiction.<\/p>\n In addition, the five free complaints provided under the new model will not be included when AFCA calculates the user charge that applies to more frequent users of the service.<\/p>\n Locke noted that AFCA would continue to monitor the performance of the new model over the coming year “…including ensuring positive, fair and equitable member and complainant resolution behaviours were occurring under the new model.”<\/p>\n