Module Application
- Does your organisation provide or deal in financial products/services or engage in credit activities on the financial services market?
- Does your organisation currently hold or intend to acquire an Australian Financial Services licence or an Australian Credit licence?
- Does your organisation have systems and processes in place to manage and monitor compliance with its obligations?
- Does your organisation comply with its obligations when advertising financial and credit services and products to consumers?
- Does your organisation engage in debt collecting (directly or via a third party)?
- Does your organisation have a dispute resolution framework to deal with internal and external dispute resolution in relation the credit or financial services complaints by customers?
The FINANCIAL SERVICES MARKET INTEGRITY AND CONSUMER PROTECTION module covers shared obligations in relation to financial market integrity and consumer protection owed by Australian financial services licence (AFSL) holders and Australian credit license (ACL) holders.
AFSL and ACL holders share a number of cross-industry obligations designed to ensure that retail consumers are adequately protected when participating in the financial services market. Further, AFSL and ACL holders are required to maintain and promote the integrity of the financial services market in which they operate by meeting mandated standards of conduct, record-keeping, reporting and industry levies.
The FINANCIAL SERVICES MARKET INTEGRITY AND CONSUMER PROTECTION module contains the requirements for the following topics:
- Dealing with clients’ money and other property
- Misleading and deceptive conduct and representations
- Promoting and providing information about financial and credit services
- Customer protection in relation to financial and credit services
- Financial record keeping and reporting
- Meeting the Common Reporting Standard and FATCA Requirements
- Calculating and paying the ASIC supervisory cost recovery levy
- The Financial Services Compensation Scheme of last resort levy
- Debt collection (by a credit provider or a third party)
- APRA reporting standards - the Economic and Financial Statistics Collection, Agricultural Lending and SME Guarantee Scheme
- The Common reporting standard and Foreign Tax Account Compliance Act
- The AFIA Online Small Business Lenders Code of Practice
- Requirements for tax agents
- Dispute Resolution
AFSL and ACL holders that deal with retail consumers must comply with obligations protecting dealings with consumers, financial record keeping and debt collection. Registrable corporations and eligible ADIs must report to APRA in relation to Economic and Financial Statistics Collection, Agricultural Lending and SME Guarantee Scheme. The ASIC levy applies to deposit taking institutions, the credit sector, investment management, finance and leasing organisations, superannuation, insurance, large institutions, financial advice sector and the Financial Services Compensation Scheme of last resort levy affects entities that engage in credit activity (as credit provider or intermediary), financial product advice to retail clients or deal in securities for retail clients). All AFSL and ACL holders that deal with retail customers are required to provide the requisite dispute resolution.
Significant consequences can apply to financial services and credit licensees and their authorised representatives found to have breached or not complied with their legal obligations. These consequences vary considerably depending on the nature and extent of the breach or failure. The FINANCIAL SERVICES MARKET AND CONSUMER PROTECTION module covers specific consequences in detail. They can include monetary penalties, disciplinary measures and even terms of imprisonment for individuals found to have committed serious criminal offences.
The FINANCIAL SERVICES MARKET INTEGRITY AND CONSUMER PROTECTION module does not cover the rights or entitlements of individuals who have suffered damages or losses due to breaches of obligations by financial services and credit licensees providing services to retail consumer. The module does not cover the process that an entity or an individual would follow to report or seek compensation for the breach or their loss.