ASIC’s new product intervention power will enhance the regulator’s ability to make proactive interventions, resulting in fairer outcomes for consumers, the Australian Financial Complaints Authority (AFCA) said in a submission published this week.
“AFCA strongly welcomes the addition of the product intervention power to ASIC’s regulatory toolkit,” said David Locke, AFCA chief ombudsman and CEO. “We believe this new power will enhance ASIC’s ability to make proactive interventions in response to financial products that deliver poor consumer outcomes, irrespective of whether the financial firm has complied with legislative or regulatory requirements.”
AFCA’s submission also proposed the possibility of an increased role for AFCA in informing ASIC’s use of the product intervention power.
“There is potential for AFCA to act as a facilitator in informing ASIC of problem areas within the financial services industry through the intelligence we gather in our complaint-handling processes, and systemic issues and serious contravention-reporting functions,” Locke said.