AFS Licensee’s must; have a dispute resolution system (process) that complies with standards and requirements made or approved by ASIC and covers complaints made by [retail] clients in connection with the provision of the financial services; and, be a member of AFCA. (refer s912A(1)(g) and (2) Corporations Act).
The licensee’s IDR must include complaints against representatives including authorised representatives. It follows that authorised representatives must immediately notify the licensee about the complaint.
In addition, subscribers to the GI Code of Practice and Insurance Brokers Code of Practice must comply with parts 11 and 9.0, respectively.
Understanding the nuances of RG 271 – enforceable paragraphs
The general obligation for IDR in section 912A(1) gives rise to a legal obligation imposed on the Licensee. However, the legal requirement only applies to the enforceable paragraphs in RG 271and not all paragraphs RG 271.
Any paragraph that is not identified by ASIC as an ‘enforceable paragraph’ in RG 271 is regulatory guidance only and not a legal requirement. (refer RG 271.8 and RG 271.9)
What are the enforceable paragraphs of RG 271 for general insurance?
- definition of complaint RG 271.27 – RG 271.29 (including note)
- posts (that meet the definition of ‘complaint’ set out in RG 271.27) on a social media channel or account owned or controlled by the financial firm that is the subject of the post, where the author is both identifiable and contactable RG 271.32
- small business complaints RG 271.36
- outsourcing IDR processes RG 271.48
- what an IDR response must contain RG 271.43- RG 271.54 (including notes)
- when an IDR response must be provided by RG 271.56 – RG 271.60 (including note)
- complaint management delays RG 271.64- RG 271.66 (including notes)
- complaints closed within five business days of receipt RG 271.71
- IDR response within 5 business days RG 271.75
- the role of customer advocates RG 271.109- RG 271.110 (including note 1)
- links between the IDR process and AFCA RG 271.111- RG 271.112
- how to manage systemic issues RG 271.118- RG 271.120 (including note)
- accessibility of IDR process RG 271.134
- no charges or detriment RG 271.141
- resourcing and staff numbers RG 271.142 – RG 271.143
- empowering staff and financial delegations RG 271.146- RG 271.147
- maximum IDR timeframes and closing complaints RG 271.163 and RG 271.165
- policy and procedures RG 271.172
- data collection, analysis and internal reporting RG 271.179
- report complaints data internally and publicly RG 271.183
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