Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Mega ombudsman too powerful say financial planners

  • Font size: Larger Smaller
  • Hits: 121
  • Print

Mega ombudsman too powerful say financial planners

Australian Financial Review Apr 23, 2019 4.44pm

James Frost


The Financial Planning Association of Australia says new powers to enable the Australian Financial Complaints Authority to revisit cases from 10 years ago will lead to a spike in the cost of professional indemnity insurance and may even put some planners out of business permanently.

FPA head of policy Ben Marshan said the organisation, which represents the interests of 14,000 financial advisers, was concerned that looming rule changes allowing AFCA to expand the period for eligible disputes back to 2008 were unfair and unreasonable.

“The FPA recommends this issue warrants urgent consideration and further investigation,” Mr Marshan said.

AFCA was a forced amalgamation of the Financial Ombudsman Service, the Superannuation Complaints Tribunal and the Credit and Investments Ombudsman. It has awarded customers $67 million in compensation since it opened its doors on November 1.

The changes FPA has challenged were part of the government’s response to royal commissioner Kenneth  Hayne’s final report, released on February 4. Assistant Treasurer Stuart Robert directed AFCA on February 18 to expand its remit and consider complaints back to January 1, 2008.

Mr Marshan said the language used in the new rules was loose and could undermine the complaints process.

“AFCA works when everybody knows what to expect. When they have too much leeway,  it can lead to unfair results and becomes significantly more costly and challenging,” Mr Marshan said.

The FPA is worried legislation will see advisers and the advice they gave being judged against standards such as the Tax Agent Services Act of 2009 and the Future of Financial Advice reforms introduced in 2013.

It says the application of these standards mean any successful action against a planner may not be covered by professional indemnity insurance, leaving them exposed to hefty compensation bills and potentially forced out of the business entirely.

Mr Marshan said more care needed to be given to the wording of the rules that would leave both advisers and customers exposed. He said external dispute resolution services worked better when the parameters were predictable and consistent.

“On the financial planning side, we are hearing that professional indemnity insurance has doubled in the last 12 months,” Mr Marshan said. “The changes will potentially increase their PI premiums even further and they will be become unaffordable.

“The second issue on the consumer side is that the policy coverage may fall outside normal parameters and therefore the insurers won’t pay. If the insurance policy doesn’t pay and the planner doesn’t have the money, then the consumer won’t get paid and that is in nobody’s interests.”

The pushback follows news the Association of Independently Owned Financial Professionals was looking to raise $1 million from its members to challenge the legality of Mr Hayne’s recommendation to end grandfathered commissions.

The banking community also questioned the sense of the federal opposition’s proposal to give the ombudsman even more power than the federal government does, including the ability to revisit disputes already settled by the courts.

The Australian Banking Association chief executive Anna Bligh pointed out that both Mr  Hayne and Professor Ian Ramsay – who chaired a Turnbull-government initiated review of dispute resolution in the financial system – had explicitly rejected the concept of revisiting old cases to grant unsatisfied and aggrieved customers further avenues of redress in their respective reviews.


Last modified on
Rate this blog entry:


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 16 October 2019