Financial advice firms have been reminded the time frame in which they are required to deal with complaints via their own internal dispute resolution (IDR) system will return to 21 days from the end of October.
The Australian Financial Complaints Authority (AFCA) issued the reminder, stating a temporary extension to 30 days for financial services and advice firms to respond to financial difficulty complaints and complaints that have already been through IDR would cease on 1 November.
AFCA issued the extension in April for a six-month period, providing an extra nine days for firms to respond to complaints that have already been through the firm’s IDR process.
The authority stated the extension “recognised the need for a more flexible approach considering difficulties related to COVID-19 and allowed all parties involved in a complaint sufficient time to work together to resolve the complaint ahead of AFCA investigating”.
AFCA chief ombudsman and chief executive David Locke said the authority had been monitoring the change to the response time frame and it was now appropriate the extension came to an end as intended.
“We are appreciative of the way our members have dealt proactively with the challenges of COVID-19 and the resolution of complaints during this extended response time frame. I congratulate our members for their high levels of responsiveness during this extended time period and I am confident this high level of response will continue when the time frame reverts to 21 days,” Locke said.
He said AFCA would consider further extensions as they were needed and was aware of the ongoing impact of COVID-19 on some financial services firms and consumers, but added the complaint process was flexible enough to meet those considerations.
“I strongly urge those members who need more time to communicate with us early and regularly so we understand your situation and can respond appropriately,” he said.
AFCA added that as the extension will come to an end and the time frame will revert after 11.59pm on 31 October, only relevant complaints received after that will be subject to a 21-day response.
