FOS has released its response to the Royal Commission’s requests for information submitted on 22 January 2018 and 2 February 2018. The submission covers the following matters:
- The provision of high level details of the systemic issues and misconduct FOS has dealt with since 1 January 2008 under our formal obligations as an ASIC approved External Disputes Resolution (EDR) scheme.
- Identification of conduct that we consider may have fallen below community standards and expectations over this ten year period. We use as the relevant test the fair treatment of consumers and small businesses consistent with the principles set out in the Murray Inquiry report.
- Our views on some of the key cultural, governance and other factors behind the failures to meet community standards and expectations.
- The current regulatory regime has a patchwork of obligations that seek to express in various ways the outcome of “fair treatment” of consumers depending on the specific regulated activity or entity. We propose there would be benefits in having a common standard of fair treatment across all appropriate financial sector activities that takes into account community standards and expectations.
- We draw the Commission’s attention to the government’s AFCA reforms, importance of quickly moving on a compensation scheme of last resort, supporting organisations that assist disadvantaged and vulnerable consumers, and the need to better regulate debt management companies.
The content of the FOS submission to the Royal Commission draws upon our published annual review data and reflects the views set out in our public submissions to various inquiries over recent years.
You can access the submission here.