Australian Financial Complaints Authority updates list of non-compliant members
The Australian Financial Complaints Authority (AFCA) has today published the details of five 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. Being a member of AFCA ensures financial firms meet their legal obligations when they are operating as an Australian Financial Services 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 our 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.
Let’s recall that, in December 2020, AFCA published the details of 842 financial firms that have failed to pay their AFCA membership levy and/or other fees. In March 2021, AFCA published the details of 34 financial firms that have failed to pay their membership levy and/or other fees.
The Australian Securities and Investments Commission (ASIC) may cancel a firm’s licence if this firm fails to maintain AFCA membership. For instance, in November 2020, 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.