The Australian Financial Complaints Authority (AFCA) has today published the details of 842 financial firms that have failed to pay their AFCA membership levy and/or other fees. These financial firms and authorised credit representatives have been expelled from membership of AFCA.

Financial firms which are members of AFCA are required to pay an annual membership levy, along with fees for any complaints received about them, the body explains.

Being a member of AFCA ensures financial firms meet their legal obligations when they are operating as an Australian Financial Services (AFS) Licensee, Australian Credit Licensee, are a Superannuation Trustee or are an Authorised Credit Representative.

AFCA has attempted to contact the financial firms named and encourages them to contact its member team as soon as possible to discuss payment options for any outstanding fees and reinstate their membership, if they are still required by law to be an AFCA member.

The Australian Securities and Investments Commission (ASIC) may cancel a licence if a firm fails to maintain AFCA membership. For instance, in November this year, ASIC cancelled the AFS license of Selectinvest Pty Ltd. The regulator explained that the firm failed to maintain its external dispute resolution membership with the Australian Financial Complaints Authority (AFCA), and had failed to lodge its annual financial and audit reports since 2017.

Under the Corporations Act, ASIC may suspend or cancel an AFS licence if the licensee fails to meet its obligations under s912A. This includes the obligation to hold membership of a dispute resolution system.