ARTICLE · 31 AUGUST 2023

AFCA determinations — ignore at your peril

McMahon Clarke

Explore more from McMahon Clarke

If an AFCA determination is accepted by the consumer, it is automatically binding on the AFS licensee.

AustraliaFinance and Banking

Author LinkedIn connections

All AFSL holders providing services to retail clients are required to be a member of the Australian Financial Complaints Authority (AFCA). If an AFCA determination is accepted by the consumer, it is automatically binding on the licensee. Actions by ASIC seeking to cancel an AFS licence due to a failure to comply with an AFCA determination are nothing new. However, as partner Selina Nutley explains, a recent Federal Court case shows ignoring an AFCA determination can not only lead to the loss of an AFS licence, but see the financial firm deemed insolvent.

BACKGROUND

NextGen Financial Group (NextGen) provided financial services to WJ & V Drakoulis Super (Drakoulis), the trustee of a self-managed super fund.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

What Does A Mortgage Actually Secure? The Limits To Recovering Potential Costs

AustraliaFinance and Banking

Bennett & Philp Lawyers

Daylight Saving Time For New York Ends This Weekend

GlobalFinance and Banking

Funds Update - 2 October 2026

AustraliaFinance and Banking

Herbert Smith Freehills Kramer LLP

Funds Update - 16 October 2026

AustraliaFinance and Banking

Herbert Smith Freehills Kramer LLP

The hidden risk facing Australia’s credit funds: Property values haven’t fallen, but transactions have

AustraliaFinance and Banking

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Finance and Banking
- Financial Services

Related Comparative Guides

Comparative Guide

Banking & Finance

Comparative Guide

Capital Markets

Comparative Guide

Lending & Secured Finance

Comparative Guide

Alternative Investment Funds

See more popular content from

Finance and Banking

Compliance Committee Forum Webinar, June 2023

The recent Compliance Committee Forum webinar included updates for fund managers and a discussion on greenwashing.

AustraliaFinance and Banking

Daylight Saving Time For New York Ends This Weekend

Are you reporting trades by New York (NY) time or following NY close of business? If so, it is important to check that your trades/transactions are still reported at the correct time as Daylight Saving Time (DST) ends in the US on Sunday, 1 November 2026 at 2:00 am local time.

GlobalFinance and Banking

Australia's Enhanced Substantial Holding Disclosure And Beneficial Ownership Disclosure Regime Comes Into Effect From 4 December

Australian financial markets face a fundamental shift in disclosure requirements from December 2026, as new rules expand substantial holding obligations beyond traditional voting interests to capture derivative positions and economic exposure. Market participants must now navigate complex calculations involving physically settleable derivatives, cash-settled instruments, and offsetting short positions—with no grandfathering for existing holdings.

AustraliaFinance and Banking

Loan Default Negotiations: What Options Do Borrowers Have?

When a borrower defaults on a loan, does the lender have an immediate right to repossess property or force a sale? This article examines the negotiation options available to borrowers after loan default, the statutory protections under the National Credit Code, and the enforcement rights and obligations of lenders under Queensland's Property Law Act 2023.

AustraliaFinance and Banking

Stonegate Legal

Funds Update - 4 September 2026

On 24 August 2026, ASIC released its 2026-2027 Corporate Plan, announcing that it is committed to being easier to deal with for those trying to comply with the law, while being harder to avoid for those causing harm.

AustraliaFinance and Banking

Herbert Smith Freehills Kramer LLP

New Payment Models Face A Broader Licensing Regime

Australia's payment services landscape is undergoing a fundamental regulatory transformation with the introduction of new legislation that shifts focus from specific technologies to the functions and activities performed by payment service providers. The Treasury Laws Amendment Bill 2026 will replace the existing non-cash payment facility framework with a comprehensive licensing regime that distinguishes between payment products and payment services, potentially capturing previously unregulated payment

AustraliaFinance and Banking

Australia's Financial Services Council Issues New Guidelines On Climate Risk Disclosure For Asset Managers

The Guidance Note seeks to provide practical steps, based on leading practice, to guide investment managers on how to communicate with investors regarding the relevant green or sustainable attributes of relevant products and services.

AustraliaFinance and Banking

Equity Derivatives: The New Substantial Holder Notice Disclosure Requirements

From 4 December 2026, enhanced substantial holding disclosure and beneficial ownership disclosure obligations will apply to entities listed on Australian securities exchanges.

AustraliaFinance and Banking

Herbert Smith Freehills Kramer LLP

ASIC extends deadlines for AFSL holders to lodge Financial Reports

Listed and unlisted entities will have an additional month to lodge their financial statements with ASIC.

AustraliaFinance and Banking

Sophie Grace Pty Ltd

Australia's Updated Financial Innovation Strategy

The Australian Government has unveiled its Financial Innovation Strategy, introducing a new Financial Innovation Committee and overhauling the Enhanced Regulatory Sandbox framework to better support emerging businesses testing innovative financial products. The strategy encompasses reforms across consumer data rights, digital assets, tokenised infrastructure, and regulatory frameworks designed to position Australia as a leader in financial innovation.

AustraliaFinance and Banking