AFCA all clear to name and shame
ASIC has given the Australian Financial Complaints Authority a green light to name firms in its published determinations, which will be a significant departure from the practices of its predecessor organisations.In June, AFCA released a consultation paper on the issue, saying the move was part of its commitment to being "open, transparent and accountable to the public".AFCA said other ombudsman schemes already do this, including the UK Financial Ombudsman Service.The change to rule 14.5 of the AFCA scheme allows it to identify the financial service provider but no other parties.The change was made in the face of some pushback from the industry. One submission argued that "naming and shaming" financial institutions in the post-Hayne environment "is likely to cause inappropriate and unfair commercial damage to named businesses".Other arguments against the change were that it would be unfair to name finance aggregators when a dispute involves one of its representatives. The aggregator may have no control over the conduct complained about.Another was that naming and shaming would be inappropriate in disputes where the issue is minor, such as misunderstandings or service standards.AFCA said in a statement that it was working with ASIC to determine a start date for the new process.