Australia Signals It Won’t Tolerate Scams: Regulator and Ombudsman Join Forces

Australia Signals It Won’t Tolerate Scams: Regulator and Ombudsman Join Forces

The Australian Prudential
Regulatory Authority (APRA) has signed a new Memorandum of Understanding (MoU)
with the Austrian Financial Complaints Authority (AFCA) for continued
cooperation ‘to support a fair and efficient financial system.’ AFCA, a membership-based
external dispute resolution (EDR) body for Australian consumers,
announced the development on Friday, noting that the memorandum outlines the basis for engagement between the non-profit and the prudential regulator.

The agreement covers areas of cooperation and coordination such as information sharing, AFCA said. David Locke, AFCA’s CEO and
Chief Ombudsman, further noted that the memorandum reflects the EDR organization’s
“intention to maintain a proactive, open and collaborative relationship.”

“While we have distinct mandates
and responsibilities, we have the common goal of protecting consumers and
contributing to the maintenance of consumer confidence in Australia’s financial
system,” Locke explained.

Commenting on the collaboration
between both authorities, Ella Rosenberg, an expert on counter terrorism in
financial technology, noted that the agreement represents a partial shift in accountability
towards the customers of financial institutions in
Australia.

“[The] involvement of an ombudsman is
a significant sign from the Australian Government that Milton-like cases will
not be tolerated and the issuers of these licenses and their respective legal
counsel are also under the watchful eye,” Rosenberg told Finance
Magnates.

In addition, the agreement shows that Australia is taking the lead with consumer protection, having
learned from the mistakes of its European counterparts, the regulatory expert on European Union laws added, further noting that country is signaling that it will not tolerate fraud and dismissal by its regulator.

The Australian Prudential
Regulatory Authority (APRA) has signed a new Memorandum of Understanding (MoU)
with the Austrian Financial Complaints Authority (AFCA) for continued
cooperation ‘to support a fair and efficient financial system.’ AFCA, a membership-based
external dispute resolution (EDR) body for Australian consumers,
announced the development on Friday, noting that the memorandum outlines the basis for engagement between the non-profit and the prudential regulator.

The agreement covers areas of cooperation and coordination such as information sharing, AFCA said. David Locke, AFCA’s CEO and
Chief Ombudsman, further noted that the memorandum reflects the EDR organization’s
“intention to maintain a proactive, open and collaborative relationship.”

“While we have distinct mandates
and responsibilities, we have the common goal of protecting consumers and
contributing to the maintenance of consumer confidence in Australia’s financial
system,” Locke explained.

Commenting on the collaboration
between both authorities, Ella Rosenberg, an expert on counter terrorism in
financial technology, noted that the agreement represents a partial shift in accountability
towards the customers of financial institutions in
Australia.

“[The] involvement of an ombudsman is
a significant sign from the Australian Government that Milton-like cases will
not be tolerated and the issuers of these licenses and their respective legal
counsel are also under the watchful eye,” Rosenberg told Finance
Magnates.

In addition, the agreement shows that Australia is taking the lead with consumer protection, having
learned from the mistakes of its European counterparts, the regulatory expert on European Union laws added, further noting that country is signaling that it will not tolerate fraud and dismissal by its regulator.

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