Australian Financial Complaints Authority (AFCA) Membership: Who Qualifies and What You Get
A guide for AFS licensees regarding the mandatory AFCA membership required for external dispute resolution of client complaints.
This membership provides an external dispute resolution service designed to manage and resolve complaints made by clients against financial services providers.
Who it's for
This scheme is specifically for all AFS licensees. If you are authorized to provide financial services under an Australian Financial Services license, you fall under the scope of this membership requirement.
What you get
By being a member, you gain access to an external dispute resolution service. This service acts as a formal mechanism for handling client complaints, providing a structured way to manage disputes that arise between a financial service provider and their clients. This process helps ensure that client grievances are addressed through an established, independent framework.
What it costs you
Being a member involves financial obligations. You are required to pay an annual membership fee to maintain your standing. Additionally, you will be subject to complaint handling levies, which are costs associated with the administration and resolution of specific disputes brought to the authority.
The catch to know
The most important thing to understand is that this membership is not a voluntary choice for those in the industry. You are legally required to be a member in order to hold an AFS license. This means membership is a fundamental requirement for maintaining your legal standing to provide financial services in the country.
How to apply
- Confirm that you currently hold a valid AFS license.
- Visit the official AFCA portal to access the specific membership registration details.
- Complete the necessary enrollment steps as outlined by the authority.
- Ensure all required annual membership fees and levies are settled to remain compliant.