The Federal Parliamentary Labor Party is being pressed to more closely examine the Government’s legislative moves to establish a one-stop-shop approach to external dispute resolution (EDR) under the Australian Financial Complaints Authority (AFCA).
The Credit and Investments Ombudsman (CIO) has confirmed that it has been lobbying to have the legislation referred to a Parliamentary committee before it is referred to the Parliament for debate.
The CIO’s move has come amid continuing concern within the superannuation industry about the inclusion of the Superannuation Complaints Tribunal (SCT) within the AFCA structure, even though key industry stakeholders were virtually united in their opposition to such a move.
The call for the matter to be referred to a Parliamentary Committee also come just days after the Minister for Revenue and Financial Services, Kelly O’Dwyer announced the make-up of the expert panel to oversee the transition of the existing EDR schemes into the new umbrella body.
That expert panel includes the current chair of the SCT, Helen Davis and the current chief executive of the Financial Ombudsman Services (FOS), Shane Tregellis.
While the FOS and the Australian Securities and Investments Commission (ASIC) have strongly supported the creation of the AFCA, the CIO has strongly opposed such a move arguing that it is substantially unwarranted and is likely to prove more costly to the industry.