AFCA urges equal legal responsibility regime for scams | Australian Markets
On the similar time as financial advisers proceed to complain in regards to the funding model for the Compensation Scheme of Final Resort (CSLR), the Australian Monetary Complaints Authority (AFCA) is urging a legal responsibility regime traversing all sectors for the Scams Prevention Framework (SPF).
AFCA has made clear its help for the “shared responsibility framework” envisaged by the laws.
In a submission filed with the Senate Economics Laws Committee AFCA stated it thought-about it important that “the liability regime applies consistently across all sectors” and “relevant SPF rules and codes have identical settings for apportionable claims under the SPF so that IDR, EDR and any remediation process can produce consistent outcomes in making a consumer ‘whole’ following scam losses”.
“A ‘shared responsibility framework’ means that each participant has a role to play to support timely and comprehensive resolution of complaints,” AFCA stated.
“To realize this can require all individuals to:
* re-imagine key components of dispute decision because it at the moment operates
* shift from a ‘current state’ that decides complaints and apportions legal responsibility on a case-by-case foundation which may be complicated, pricey and distressing to rip-off victims
* take into account and develop fashions equivalent to standardised choice trees, for instance, that clearly and constantly apportion legal responsibility when obligations haven’t been met by one or more events.
“AFCA stands ready to contribute to the development of an Australian model for a ‘shared responsibility framework’ for scams that prioritises early resolution, group complaints handling, shared responsibility tables to support liability apportionment and the adoption of a remediation lens,” it stated.
AFCA identified in its submission that, beneath the proposed SPF, “it’s supposed that AFCA be authorised as the only EDR scheme for the primary three designated sectors – banking, telecommunications and digital platforms.
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