Since Australia’s government launched a dedicated dispute resolution body for financial services in the country in 2018 the Australian Financial Complaints Authority (AFCA) has handled complaints filed by Australian residents against financial firms authorized by the Australian Securities and Investments Commission. We previously reported on the dispute resolution body’s performance.
Today, the dispute resolution body has expelled over 600 financial firms for failure to pay AFCA membership dues. As with any organization of this type, member firms are expected to pay an annual levy to maintain membership in the organization, which is calculated using a formula that takes into account the size of the financial firm’s operations and previously filed complaints and awards levied against such firms in complaints.
The full list of expelled firms can be found here. It is not known if expulsion from AFCA will have other ramifications for the listed firms, but traders should be aware if their online brokerage has been expelled, as this means they have no official regulatory avenue to pursue any complaints against an ASIC-licensed brokerage without membership in AFCA.