Key recommendations from final report issued in May 2017 include:

  • establishing a single EDR body for all financial disputes to replace FOS and CIO;
  • higher monetary limits and compensation caps for consumer disputes (other than superannuation disputes) and for small business disputes (other than credit facility disputes);
  • no monetary limits or compensation caps for disputes about whether a guarantee should be set aside where it has been supported by security over the guarantor’s primary place of residence; and
  • requiring financial institutions to report to ASIC in a standardised form on their IDR activity, including the outcomes for consumers in relation to complaints raised at IDR.

Contrary to the Carnell Report recommendation, the Panel found that EDR scheme membership is not required for valuers, investigating accountants or receivers appointed by a bank. Further, the Panel stated that there is no reason why credit representatives should continue to be required to hold EDR membership.

On 2 February 2017, the Review’s Terms of Reference were extended to making recommendations on the establishment, merits and possible design of a last resort compensation scheme and considering the merits and issues involved in providing access to redress for past disputes.

Read the Review of the Financial System External Dispute Resolution and Complaints Framework (Ramsay Report)