Without limiting paragraph (b), ASIC has the function of promoting the adoption of, and approving and monitoring compliance with, industry standards and codes of practice (including standards and codes in relation to the resolution of disputes between the providers of financial services and consumers).

(2) ASIC must not approve an industry code under subsection (1) unless ASIC is satisfied with the procedures for alternative dispute resolution, having regard to any of the following guidelines:

(a)

they do not permit a complaint or dispute to be considered unless it has first been lodged with the relevant corporation and:

(i)

has been resolved by the corporation, but not to the satisfaction of the complainant; or

(ii)

has not been resolved by the corporation and 90 days have elapsed since the complaint or dispute was lodged;

(b)

they provide for any systemic, persistent or deliberate conduct to be reported to ASIC;

(c)

they operate free of charge to the complainant;

(d)

they cover a sufficiently broad range of complaints, with the terms of reference of the scheme to be determined after consultation with consumer organisations and ASIC;

(e)

they provide for independence from the parties to the complaint;

(f)

they are overseen by a body which includes consumer representation (appointed or approved by the Minister with responsibility for consumer affairs) and a person appointed by ASIC;

(g)

they accord with the principles of natural justice (including that information used by the decision-maker is provided to the complainant unless prohibited by law, and that reasons for decisions are given in writing);

(h)

they provide for decisions to be made by reference to what is fair in all the circumstances, observing applicable law and relevant judicial authority and having regard to good practice in the relevant industry;

(i)

they have appropriate published procedures, including suitable standards of timeliness;

(j)

they include arrangements for appropriate promotion of the procedures;

(k)

they are supported by adequate resources, including staff whose responsibility is to assist consumers in making their complaints, if necessary by investigating the conduct of a financial services provider;

(l)

decisions made under them will be observed by the relevant corporations;

(m)

they provide adequate remedies;

(n)

they provide for the maintenance and publication of appropriate statistics on its operations;

(o)

they provide for the provision to ASIC and the relevant industry associations, details of the decisions made in respect of all complaints, or a representative selection of complaints, including the reasons for the decisions but excluding any information that would identify any of the parties to the complaint.

(3) ASIC may revoke an approval given under subsection (1) if ASIC is satisfied that the code no longer meets, or substantially meets, the guidelines of subsection (2).

Subdivision G—Enforcement and remedies