The Australian Financial Complaints Authority has finalised a new funding model that will result in significant number of its members paying lower fees under a user-pays approach.
Under the new model, where members who are not subject to complaints will pay less, 20 per cent will pay lower fees and 10 per cent will pay more. The rest will be left in much the same position they are in now.
Members that will pay more are those that make most use of AFCA’s services and are typically large financial institutions.
Among banking industry members, AFCA estimates that 33 per cent will see fees fall, 53 per cent will see no change and 14 per cent will see an increase due to complaints volumes.
AFCA chief executive David Locke said the new model was designed to reward good behaviour and remove cross-subsidies.
The proposed charges include a registration fee, a simplified complaints fee structure and the introduction of five free complaints per year (except for frequent users).
Locke said that after consultation, AFCA has agreed to introduce instalment payments for fees above a threshold amount.
The ombudsman will not charge a fee for handling a complaint if it is found to be outside its jurisdiction.
A separate superannuation levy has been abolished and super funds brought under the same fee structure as other members.
Locke said 95 per cent of members will pay only an annual registration fee.