Bulletin 29 – New regulatory guidance on internal dispute resolution (IDR)

The Australian Securities and Investments Commission (ASIC) has issued new regulatory guidance – for financial institutions, including credit licensees – aimed at making it easier to settle simple disputes internally with customers.

The guidance applies to financial services (AFS) licensees, credit licensees, and some other financial services providers.

Consumer credit and financial industry participants (e.g. banks, credit unions, insurers, financial planners, stockbrokers, insurance brokers and mortgage brokers) will have reduced paperwork obligations where they quickly resolve complaints at the IDR process.

Also, the guidance sets out IDR and external dispute resolution (EDR) procedures for customers who have loans from bodies which make or buy loans or leases, and repackage and sell them to investors (i.e. securitisation).

You should familiarize yourself with the guidance if you, or your business, is involved in securitisation or securitisation products, or you are a consumer credit representative for a firm or entity that is involved in securitisation.

We recommend you read:

  • the media release from ASIC for a summary, and
  • the guidance (Regulatory Guide 165 Licensing: internal and external dispute resolution (RG 165) and Regulatory Guide 139 Approval and oversight of external dispute resolution schemes (RG 139)).
 

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