Australian Financial Complaints Authority (AFCA) | Definition and history


The Australian Financial Complaints Authority (AFCA) acts as a center for customer complaints in Australia. It seeks to appease consumers and businesses.

An organization might strive to deliver only the best to the consumers. However, often consumers and the organization land in unfathomable disputes. Such situations can make functioning adequately impossible for both the consumers and organizations. 

The AFCA is like a grievance resolution body of the customers in Australia. Many times consumers fall prey to the unfair practices of various financial organizations. It brings them losses and thus causes them to lose their money. AFCA is an authority that assists the functioning of financial services organizations in Australia by keeping participants happy.

AFCA in a nutshell

  • It is a leading External Dispute Resolution (EDR) in Australia.
  • AFCA works in the consumer’s interests’ when he cannot settle his dispute with the Australian financial business organizations. 
  • Australian Securities & Investment Commission oversees that AFCA works most legally.
  • All leading Australian financial organizations fall within the purview of AFCA. 
  • AFCA regulates Binary Options market, supports ASIC’s ban on selling binary options to private investors.

Thus, AFCA is a considerable authority in the Australian economy. It binds Australian and global investors in the country with various financial institutions. The oversight of this body on the businesses makes consumers feel safe with their money and investments. 

The history of the AFCA

Most people know that AFCA had different predecessors. It makes one think about the need for a new regulatory body. Well, the ever-changing investment market demanded many changes within the regulatory framework in Australia. Thus, AFCA came into being. 

Here are some historical facts about the AFCA:

The official logo of the Financial Ombudsman Service
The official logo of the Superannuation Complaints Tribunal

The basic proposition behind setting up AFCA was to give a wholesome experience to the financial products consumers. In addition, AFCA has many significant roles in maintaining stability in consumer-business relations.

The Role of the AFCA

The official website of the AFCA
The official website of the AFCA

There are some essential roles that AFCA plays, including:

  • It assists small businesses and other parties reach a reasonable agreement with financial organizations. 
  • AFCA takes cognizance of the complaints in the most impartial manner. The authority operates legally and works in the best interest of the consumers.
  • While resolving complaints, it might even suggest compensatory measures for the consumers.
  • If the consumer complained about the financial firm does not see any outcome, AFCA might suggest the best possible outcome. 

Does the AFCA regulate the Binary Options market?

The AFCA actively engages in regulating the Binary Options market and strongly supports ASIC’s proposed ban on the issue and sale of binary options to private investors.

In response to ASIC’s advice, AFCA emphasizes the need to extend the ban to OTC derivatives like binary options and CFDs, as it considers their sale to be exploitative.

Their stance clearly shows AFCA’s commitment to protect consumers from unfair practices in the binary options industry.

Conclusion

The AFCA has an indirect role in maintaining economic stability within the Australian environment. It keeps track of all financial products-related complaints and resolves them with utmost dedication. 

Thus, the consumers and financial organizations in the country can function smoothly without any worrying causes. It finally ensures a stable Australian economic environment where money flow can happen without much interference. AFCA is one of the bodies behind the cordial relations of the customers with the financial organizations.

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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