ASIC consults on guidance for Scams Prevention Framework

ASIC has commenced a consultation on proposed updated guidance to simplify and streamline the Scams Prevention Framework (SPF) coming into effect early next year.

The consultation relates to the updates applied to Regulatory Guide 267 Oversight of the Australian Financial Complaints Authority to reflect AFCA's expanded jurisdiction under the SPF when it commences on 31 March 2027.

In line with the expanded capacity, AFCA amended its rules to establish a new jurisdiction for SPF complaints and commenced another consultation earlier this year.

ASIC's proposed updates include the removal of some content that is now covered by AFCA's ASIC-approved scheme rules for complaints resolution, while retaining references to rules that ASIC considers are key to AFCA's operation and its ability to meet obligations under the law.

Further, the update preserves ASIC's core oversight expectations and more clearly distinguishes between legislative requirements, AFCA's scheme rules and ASIC's expectations.

This is the first substantive update to RG 267 since AFCA was established in 2018.

ASIC said it is now seeking feedback to ensure RG 267 remains "clear and current".

"While ASIC has an oversight role over AFCA, the scheme remains independent and responsible for its own internal processes and the management of complaints. Matters related to AFCA's internal processes or management of complaints are outside the scope of RG 267," ASIC said.

The consultation is now open will close on November 24.

The SPF was introduced by the government to strengthen consumer protections across multiple sectors, as AFCA will consider scam-related complaints in relation to the initial sectors, including banking, telecommunications and digital platforms.

Financial firms must have a dispute resolution system that consists of an internal dispute resolution (IDR) procedure and an active AFCA membership to remain compliant.