RG271

On 5 October 2021, ASIC’s RG271 came into effect, bringing with it reduced timeframes, and tighter oversight and reporting obligations.
 

See below a high-level overview of the changes that came into effect on 5 October 2021.

 

Reduced Timeframes 

• An acknowledgement of receipt of a complaint should be provided within 24 hours (or one business day) or as soon as practicable
   

• IDR response timeframes updated as below:

​

​

​

 

 

 

 

 

 

 

 

 

 

There may be exceptions to the above outlined maximum IDR response timeframes in complex matters, when a delay is outside of the Financial Firm’s control, etc.

 

Different rules apply to complaints resolved within 5 business days

 

Disclosures

When the complainant is issued an IDR Response, the Financial Firm must also inform the complainant of their right to lodge a complaint with the Australian Financial Complaints Authority (AFCA) if they are dissatisfied with the outcome of their complaint.

 

Customer Advocates

A complainant may be offered the option of escalating their complaint to a Financial Firm’s customer advocate as an alternative to progressing their complaint directly to AFCA. However, this must not prevent the complainant from exercising their right to access AFCA’s services. The total time spent managing a complaint must not exceed the maximum IDR timeframes.

 

Representatives

Representatives are permitted to lodge complaints on behalf of complainants. The complainant should not be contacted directly unless specifically requested or:

• There is reasonable belief that the representative is acting against the complainant's best interest, is acting in a deceptive or misleading manner or is not authorised to represent the complainant

• At the time of dealing with the complaint, the representative has been excluded by AFCA from representing complainants in relation to any complaint lodge with AFCA

 

Resourcing

Reviews must be undertaken to assess whether a Financial Firm’s IDR process is adequately resourced, where the number of staff must be sufficient to deal with complaints in a fair and effective manner within maximum IDR timeframes, and that there are relevant staff with appropriate authority to determine and/or approve complaint outcomes to facilitate a fair and efficient resolution of complaints.

 

Common IDR observations

Complaint committees

The creation of Complaints Committees that are involved in the governance over IDR processes and apply a ‘fair and reasonableness’ review over IDR resolutions.

 

Quality controls

The use of preventative and detective controls such as progress letter and outcome letter quality checks and complaint officer case file audits.

 

Implementation of systems and systems enforced controls

Automated complaints management.

 

Internal framework requirements

Some organisations hold themselves accountable to standards that go over and above regulatory requirements e.g. more frequent communication.

 

IDR framework and processes

Some firms are considering how their IDR framework and processes will fit into their product lifecycle and particularly triggers for the Design and Distribution Obligations requirements

 

Communication

Communication with members is reactive or delayed as opposed to proactive and frequent.

 

Disclosure

IDR teams responding to complainants via informal emails as opposed to formal letter templates and therefore not providing mandatory disclosure requirements such as access to External Dispute Resolution (EDR) systems.

 

Regulatory disclosures

Failing to notify complainants of their rights to request written reasons should their complaint not be resolved within regulatory timeframes and/or failing to provide written reasons for decisions made.

 

Timeliness

Failing to resolve complaints within the regulatory timeframes.

 

Complaint support

Not adequately documenting key interactions with the complainant throughout the complaint lifecycle.

 

 

How we can help

 We can offer tailor made solutions that help our clients meet their regulatory obligations

Complaint management

• Recording of and acknowledging receipt of complaints

• Case management

 

Data analytics and enhanced Reporting

• Provide you a customised dashboard that analyses complaints data for key insights, including word stemming, sentiment analysis, complaints ranking and keyword search.

• Development of enhanced governance reporting to better identify systemic issues

 

Data transformation

• Establishment of a streamlined data transformation process

• Enable the creation of a high quality data asset for the reporting of complaints handling in accordance with ASICS’s requirements

 

Independent assurance reviews

• Independent assurance reviews over the end to end IDR framework

 

Compliance assessment

• Complaints framework maturity assessment against best practice and market expectations

• Gap analysis of current practices vs RG271 requirements

• Assistance in updating policies, frameworks, and processes

 

Business assurance controls

• Review of completeness and accuracy of input to and output from complaints management systems

• Where complaints management system is automated, review of IT and business application controls over complaints system

​

​