NIBA Supports AFCA Rule Changes to Strengthen Dispute Resolution Framework

NIBA has lodged a submission in support of key amendments proposed by the Australian Financial Complaints Authority (AFCA) to its Rules and Operational Guidelines.

These proposed changes aim to strengthen the effectiveness, transparency and accountability of Australia’s external dispute resolution framework. 

In its submission, NIBA iterated their support for changes to rules relating to paid representatives including requiring the use of appropriate communication channels and providing AFCA further discretion to cease dealing with a complaint where a paid representative is required to be an AFCA member but is not.  NIBA noted that while AFCA plays a critical role in providing accessible dispute resolution for consumers and small businesses, the increasing number of complaints lodged by Paid Representatives has presented operational challenges. 

“Where Complainants choose to engage Paid Representatives who receive payment in exchange for their services, it is reasonable to expect those representatives to comply with procedural requirements that enable the smooth operation of the scheme.” NIBA said in its submission 

“The proposed amendments strike a sensible balance by requiring Paid Representatives, many of whom are already licensed and AFCA members, to engage with the scheme in a way that supports a fair and timely resolution process,” the submission continued. 

NIBA also expressed support for changes that would give AFCA the power to publish the names of Financial Firms that fail to comply with an AFCA Determination stating that doing so would help maintain a level playing field by ensuring that firms that meet their obligations are not disadvantaged by those that do not. 

NIBA noted that the proposed amendment was also likely to enhance public confidence in the external dispute resolution framework by reassuring consumers, small businesses and industry stakeholders that misconduct will be addressed in a transparent and accountable manner. 

AFCA will now consider the feedback received through the consultation process before submitting the proposed Rule changes to ASIC for approval in the second quarter of the 2025/26 financial year. Subject to ASIC’s approval, the new Rules are expected to take effect no later than 12 March 2026. 

Read NIBA's full submission here.