More time for trustee complaint resolution

The Australian Securities and Investments Commission (ASIC) has updated the complaints process for trustee companies to give trustees a longer period of time to deal with complaints internally.

From 1 January 2012, traditional services businesses will have a maximum of 90 days to deal with complaints at an internal dispute resolution (IDR) level.

Within this timeframe, trustee companies must give a final response or give reason for the delay and outline the complainant’s right to use an approved external dispute resolution (EDR) system, such as the Financial Ombudsman Service.

According to ASIC, this longer timeframe will enable traditional services businesses to identify and contact other beneficiaries who may have an interest in the outcome of the complaint at IDR.

The changes to EDR schemes include a cap on the value of the claim and the maximum award compensation.

From January 2012, schemes must handle a complaint if the value is less than $500,000 and schemes may award compensation up to $280,000.