Chapter 1 - Introduction and background

[1]        Journals of the Senate, No. 140, 14 February 2019, p. 4673.

[2]        See, for example Phil Khoury, Independent Review of the Code of Banking Practice, 2017; House of Representatives Economics Committee, Review of the Four Major Banks, 2016–present; Senate Economics References Committee, Scrutiny of Financial Advice, 2017.

[3]        Review of the financial system external dispute resolution and complaints framework (Ramsay Review), Final Report, April 2017, p. 3.

[4]        Ramsay Review, Final Report, pp. 27–28.

[5]        Ramsay Review, Final Report, pp. 30–31.

[6]        Ramsay Review, Final Report, p. 92.

[7]        Ramsay Review, Final Report, p. 91.

[8]        Ramsay Review, Supplementary Final Report, September 2017, p. v.

[9]        The Hon. Kelly O'Dwyer MP, Minister for Revenue and Financial Services and the Hon. Craig Laundy MP, Minister for Small and Family Business, the Workplace and Deregulation, 'Consumers win as a one-stop-shop for financial complaints passes through parliament', Media Release, 14 February 2018.

[10]      See, Letters Patent, Register of Patents No. 52, 14 December 2017, p. 67.

[11]      Term of Reference (h)(i).

[12]      Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission), Final Report, 2018, p. 490.

[13]      Royal Commission, Final Report, 2018, p. 491.

[14]      Royal Commission, Final Report, 2018, pp. 490–491.

[15]      Royal Commission, Final Report, 2018, p. 491.

[16]      Royal Commission, Final Report, 2018, p. 491.

[17]      Royal Commission, Final Report, 2018, p. 491.

[18]      Royal Commission, Final Report, 2018, pp. 491–492.

[19]      Royal Commission, Final Report, 2018, p. 483.

[20]      Australian Financial Complaints Authority (AFCA), Submission 41, p. 8.

[21]      Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018 (AFCA Act), s. 4, sch. 1, pt. 1, item 2, ss. 1051(4).

[22]      AFCA, Enabling legislation, https://www.afca.org.au/about-afca/rules-and-guidelines/enabling-legislation/ (accessed 14 March 2019).

Chapter 2 - The issues

[1]        Australian Banking Association (ABA), answers to questions on notice, 21 March 2019 (received 29 March 2019), p. 1.

[2]        ABA, Banking Code of Practice, https://www.ausbanking.org.au/code/banking-code-of-practice (accessed 22 March 2019). 

[3]        ABA, Code of Banking Practice 2013, 2013, Part F.

[4]        ABA, Code of Banking Practice 2013, 2013, p. 6.

[5]        ABA, Banking Code of Practice, https://www.ausbanking.org.au/code/banking-code-of-practice (accessed 22 March 2019).

[6]        ABA, Code of Banking Practice 2013, 2013, p. 8.

[7]        ABA, Banking Code of Practice, https://www.ausbanking.org.au/code/banking-code-of-practice (accessed 22 March 2019).

[8]        ABA, 'A new higher standard in Australian banking', Media Release, 31 July 2018.

[9]        Australian Securities and Investments Commission (ASIC), 'ASIC approves the Banking Code of Practice', Media Release, 31 July 2018.

[10]      ABA, Banking Code of Practice, 2018, p. 4.

[11]      ABA, Banking Code of Practice, 2018, Part 10.

[12]      ABA, 'A new higher standard in Australian banking', Media Release, 31 July 2018.

[13]      ABA, 'A new higher standard in Australian banking', Media Release, 31 July 2018.

[14]      ABA, 'New Banking Code standards should be adopted by entire industry', Media Release, 7 September 2018.

[15]      Financial Counselling Australia (FCA), Submission 45, pp. 10–11.

[16]      FCA, Submission 45, p. 10.

[17]      Consumer Action Law Centre (CALC), Submission 29, p. 3.

[18]      CALC, Submission 29, pp. 3–4.

[19]      ABA, 'A new higher standard in Australian banking', Media Release, 31 July 2018. The 2013 code was subject to review every five years.

[20]      Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Submission 13, p. 1.

[21]      ASBFEO, Submission 13, p. 1.

[22]      Ms Dana Beiglari, Senior Solicitor, Consumer Law, Legal Aid NSW, Proof Committee Hansard, 21 March 2019, p. 16.

[23]      CALC, Submission 29, pp. 2–3.

[24]      CALC, Submission 29, pp. 3–4.

[25]      The National Consumer Credit Protection Act 2009 governs lending to consumers, as distinct from lending for a business purpose.

[26]      Consumer Credit Legal Service WA (Inc) (CCLSWA), Submission 21, p. 4.

[27]      Mrs Anita Shannon, Submission 55, pp. 2–3.

[28]      On 19 October 2016, the Minister for Revenue and Financial Services, the Hon. Kelly O’Dwyer MP, announced a taskforce to review the enforcement regime of ASIC—see, The Hon. Kelly O’Dwyer MP, Minister for Revenue and Financial Services, 'ASIC Enforcement Review Taskforce' , Media Release, 19 October 2019. The Taskforce report was provided to the Government in December 2017.

[29]      Mr David Locke, Chief Ombudsman and Chief Executive Officer, Australian Financial Complaints Authority (AFCA), Proof Committee Hansard, 21 March 2019,  p. 54.

[30]      The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) recommended that ' Section 912A of the Corporations Act should be amended to require that AFSL holders take reasonable steps to co-operate with AFCA in its resolution of particular disputes, including, in particular, by making available to AFCA all relevant documents and records relating to issues in dispute'—see, Royal Commission, Final Report, 2018, p. 34 at Recommendation 4.11.

[31]      Dr June Smith, Lead Ombudsman, Investments, the Australian Financial Complaints Authority (AFCA), Proof Committee Hansard, 21 March 2019, p. 54.

[32]      Mr Col Shields, Submission 2, p. 1; Banks Gone Bad, Submission 16, p. 3; CALC, Submission 29, p. 6; Maurice Blackburn Lawyers (Maurice Blackburn), Submission 47, p. 2.

[33]      Productivity Commission, Access to Justice Arrangements, Inquiry Report No. 72, 5 September 2014, Volume 1, p. 430.

[34]      See s. 55ZF of the Judiciary Act 1903.

[35]      CALC, Submission 29, p. 5.

[36]      Ms Christine Cupitt, Executive Director, Policy, ABA, Proof Committee Hansard, 21 March 2019, p. 2.

[37]      Ms Cupitt, ABA, Proof Committee Hansard, 21 March 2019, p. 2.

[38]      CALC, Submission 29, p. 5.

[39]      CALC, Submission 29, p. 5.

[40]      Mr Josh Mennen, Principal Lawyer, Maurice Blackburn, Proof Committee Hansard, 21 March 2019, p. 26.

[41]      Maurice Blackburn, Submission 47, p. 2.

[42]      Mr Mennen, Maurice Blackburn, Proof Committee Hansard, 21 March 2019, p. 26.

[43]      Australia and New Zealand Banking Limited, Submission 40, p. 3.

[44]      Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019,  p. 51.

[45]      Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 54.

[46]      See, for example, CCLSWA, Submission 21, p. 12; Ms Ana Ganesh, Submission 26, p. 3; Dr Evan Jones, Submission 53, p. 2.

[47]      CALC, Submission 29, p. 6.

[48]      CALC, Submission 29, p. 6.

[49]      CALC, Submission 29, p. 2.

[50]      CALC, Submission 29, p. 2.

[51]      See, Legal Aid NSW, Submission 44, p. 7.

[52]      Legal Aid NSW, Submission 44, p. 7.

[53]      Maurice Blackburn, Submission 47, p. 9.

[54]      Maurice Blackburn, Submission 47, p. 9 (citations omitted).

[55]      Ms Rebekah Doran, Member, Australian Consumer Law Committee, Legal Practice Section, Law Council of Australia (Law Council), Proof Committee Hansard, 21 March 2019, p. 13.

[56]      Ms Mary Walker, Chair, Alternative Dispute Resolution Committee, Federal Litigation and Dispute Resolution Section, Law Council, Proof Committee Hansard, 21 March 2019, p. 13.

[57]      Ms Walker, Law Council, Proof Committee Hansard, 21 March 2019, p. 13.

[58]      Mr Gerard Brody, Chief Executive Officer, CALC, Proof Committee Hansard, 21 March 2019, p. 45.

[59]      Mr Brody, Proof Committee Hansard, 21 March 2019, p. 45.

[60]      Mr Brody, Proof Committee Hansard, 21 March 2019, p. 46.

[61]      Ms Doran, Law Council, Proof Committee Hansard, 21 March 2019, pp. 9–10.

[62]      Legal Aid NSW, Submission 44, p. 7.

[63]      Mr Brody, Proof Committee Hansard, 21 March 2019, p. 45.

[64]      Mr Brody, Proof Committee Hansard, 21 March 2019, p. 45.

[65]      Ms Walker, Law Council, Proof Committee Hansard, 21 March 2019, p. 8.

[66]      Ms Walker, Law Council, Proof Committee Hansard, 21 March 2019, p. 8.

[67]      See, for example, Consumer Credit Law Centre SA, Submission 49, p. 6; CCLSWA, Submission 21, p. 17.

[68]      National Association of Community Legal Centres (NACLC) and FCA, Submission to the Royal Commission, p. 6 (citations omitted).

[69]      NACLC and FCA, Submission to the Royal Commission, p. 5 (citations omitted).

[70]      NACLC and FCA, Submission to the Royal Commission, p. 2.

[71]      NACLC and FCA, Submission to the Royal Commission, p. 2.

[72]      See, for example, Consumer Credit Law Centre SA, Submission 49, p. 6; CCLSWA, Submission 21, p. 17.

[73]      CALC, Submission 29, p. 23.

[74]      See, for example, Consumer Credit Law Centre SA, Submission 49, p. 6; Law Council, Submission 56, p. 10.

[75]      Women's Legal Service Victoria, Submission 50, p. 7.

[76]      Ms Beiglari, Legal Aid NSW, Proof Committee Hansard, 21 March 2019, p. 17.

[77]      Ms Beiglari, Legal Aid NSW, Proof Committee Hansard, 21 March 2019, p. 17.

[78]      Ms Doran, Law Council, Proof Committee Hansard, 21 March 2019, p. 10.

[79]      Ms Doran, Law Council, Proof Committee Hansard, 21 March 2019, p. 10.

[80]      See, for example, ASBFEO, Submission 13, p. 1; ABA, Submission 43, p. 3; Law Council, Submission 56, pp. 11–13.

[81]      Imposed upon it by the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018, Sch 1, pt, 1, it. 2, para. 1050(4)(a).

[82]      AFCA, Submission 41, pp. 11–13.

[83]      AFCA, Submission 41, pp. 10–11.

[84]      AFCA, Submission 41, p. 12.

[85]      Ms Beiglari, Legal Aid NSW, Proof Committee Hansard, 21 March 2019, p. 15.

[86]      CCLSWA, Submission 21, p. 13.

[87]      Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 52.

[88]      CALC, Submission 29, p. 10. CALC had a number of other criticisms of AFCA, outlined in its submission at pages 10–17.

[89]      Mr Brody, CALC, Proof Committee Hansard, 21 March 2019, p. 41.

[90]      CALC, Submission 29, p. 11—see Recommendation 10.

[91]      CCLSWA, Submission 21, p. 13.

[92]      FCA, Submission 45, p. 5.

[93]      CCLSWA, Submission 21, p. 14.

[94]      ASBFEO, Submission 13, p. 2.

[95]      Maurice Blackburn, Submission 47, p. 13.

[96]      Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 51.

[97]      AFCA, answers to questions on notice, 21 March 2019 (received 28 March 2019), p. 4.

[98]      AFCA, answers to questions on notice, 21 March 2019 (received 28 March 2019), p. 4.

[99]      AFCA, answers to questions on notice, 21 March 2019 (received 28 March 2019), p. 4.

[100]    Legal Aid Queensland, Submission 8, p. 6.

[101]    Customer Owned Banking Association (COBA), Submission 27, p. 2.

[102]    COBA, Submission 27, p. 2.

[103]    Association of Financial Advisors, Submission 25, p. 3.

[104]    CALC, Submission 29, p. 13.

[105]    CALC, Submission 29, p. 13.

[106]    Ms Beiglari, Legal Aid NSW, Proof Committee Hansard, 21 March 2019, p. 19.

[107]    AFCA, answers to questions on notice, 21 March 2019 (received 28 March 2019), p. 8.

[108]    AFCA, answers to questions on notice, 21 March 2019 (received 28 March 2019), p. 8.

[109]    FCA, Submission 45, pp. 14–15.

[110]    Dr Smith, AFCA, Proof Committee Hansard, 21 March 2019, pp. 52–53. 

[111]    Dr Smith, AFCA, Proof Committee Hansard, 21 March 2019, p. 53.

[112]    Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 51.

[113]    Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 51.

[114]    Review of the financial system external dispute resolution and complaints framework (Ramsay Review), Supplementary Final Report, September 2017, pp. 13–15.

[115]    Royal Commission, Final Report, 2018, p. 41 at Recommendation 7.1.

[116]    Australian government, Government response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, February 2019, p. 36.

[117]    Australian government, Government response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, February 2019, p. 37.

[118]    Maurice Blackburn, Submission 47, p. 12.

[119]    Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 59.

[120]    Mr Locke, AFCA, Proof Committee Hansard, 21 March 2019, p. 59.

Chapter 3 - Committee view

[1]        Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission), Final Report, February 2018, p. 490.

[2]        Royal Commission, Final Report, February 2018, p. 491.

[3]        Royal Commission, Final Report, February 2018, p. 34.

[4]        Australian Government, Government response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, February 2019, p. 26.

[5]        Maurice Blackburn Lawyers, Submission 47, p. 9.

[6]        Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018 (AFCA Act), ss. 4(1).

[7]        AFCA Act, ss. 4(2).

[8]        AFCA Act, ss. 4(3).

[9]        Senate Economics Reference Committee, Credit and financial services targeted at Australians at risk of financial hardship, 22 February 2019, Recommendation 8.

Additional remarks from Government Senators

[1]        February 2019, https://financialservices.royalcommission.gov.au/Pages/default.aspx

[2]        https://www.afca.org.au/about-afca/corporate-information/constitution/

[3]        https://www.afca.org.au/members/

[4]        https://www.afca.org.au/about-afca/

[5]        Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Final Report: Volume 1, February 2019, p. 34.

[6]        The Hon Josh Frydenberg MP, the Treasurer, Proof Hansard, 2 April 2019, pp. 78–79.

[7]        Maurice Blackburn, Submission 47, p. 9.

[8]        Proof Committee Hansard, Thursday 21 March 2019, p. 13.

[9]        Proof Committee Hansard, Thursday 21 March 2019, p. 3.