Complaints & Dispute Resolution


1.0 Purpose

Capital Financial Planning WA Pty Ltd (“CFPA”) has an obligation to comply with its general obligations under section 912A(1) of the Corporations Act 2001; including facilitating the timely identification, escalation and rectification of complaints. This means that the management of the actual and potential impact, including the potential to minimise complaints from occurring in the future, can be efficiently managed.

2.0 Definition

A complaint is defined as an expression of dissatisfaction made by a client or someone legitimately representing their interests, about services and/or the complaint handling process, where a response or resolution is explicitly or implicitly expected. Generally, complaints relate to:
• advice, where complaints are specific to the inappropriate or inaccurate provision of financial product advice;
• service, where complaints are specific to the behaviour or services relating to the provision of a financial services; or
• product, where complaints are specific to the products offered by CFPA and the services offered in conjunction with these products.
A complaint can be identified from several sources depending on the nature of the client contact, e.g. directly from the client or externally from a regulator.
A complaint can be received from a client verbally or in writing, e.g. by email, telephone or online etc.

3.0 Internal Dispute Handling Process

3.1 Identification
A complaint has two key elements (each element must be satisfied to constitute a complaint):
i. the client must be dissatisfied. The client need not be irate or upset. Often dissatisfaction occurs because something has happened which does not meet the client’s expectation(s); and
ii. a response or resolution is explicitly or implicitly expected. Here, the client is expecting their concern to be addressed.
3.2 Acknowledgement
A complaint should be acknowledged as soon as possible and no later than one business day.
Where the client is present (e.g. telephone or face to face), the complaint should be acknowledged immediately.
Where the complaint has been identified without the client present (e.g. received via email), the complaint should be addressed as soon as possible.
3.3 Investigation
• the facts of the complaint;
• how CFPA should offer to resolve the complaint;
• whether the complaint points to an act of misconduct, breach of law, rules or regulations, or other matters that may require immediate action; and
• whether the complaint points to a potentially systemic issue.
3.4 Resolution
Following the investigation, CFPA will form a view about how the complaint can be resolved and propose a decision or action to the complainant.
The proposed resolution timeframe should be no later than 45 calendar days.

4.0 Internal Dispute Handling Procedure

In accordance with the size and nature of CFPA’s business, CFPA may engage the services of an external service provider in assessing complaints.
Complaints can be received either verbally or in writing. CFPA will write to the client within 10 business days of receiving the complaint acknowledging receipt of the complaint and informing the client a written response will be provided within 45 business days from initial receipt. CFPA may ask the client to confirm CFPA’s understanding of the complaint as set out in CFPA’s written confirmation to ensure the document accurately and fully records the scope of the complaint. The Responsible Manager must ensure complaints are acknowledged within the timeframe above.

Where complaints are received and resolved by the end of the 10th business day after the day on which the complaint was received, CFPA will include details within its Complaints Register. The rest of this procedure would then not be applicable.
The Responsible Manager will confer with external legal counsel immediately in relation to any complaint, including whether the complaint highlights any matters that require internal remediation by CFPA, including:

• notification to ASIC under the provisions of section 912D of the Corporations Act 2001 (i.e. significant breach notification to ASIC); and
• the need to notify CFPA’s professional indemnity ("PI") insurer.
• The Responsible Manager must obtain and review all relevant material prior to making a determination in relation to the complaint.
• CFPA should seek to resolve the complaint within 45 days of receipt of complaint.
• Any communication between CFPA and the complainant may be vetted by CFPA's legal counsel, and may be submitted to CFPA's PI insurer for their comment, prior to communication to the complainant.
• At the conclusion of the internal dispute resolution process, a written determination (the “IDR Determination") should be sent to the complainant within 45 business days, outlining CFPA’s position and proposed course of action or settlement of the complaint.
• The IDR Determination should, prior to being sent to the complainant, have been sent to CFPA's PI insurer for their comment, feedback, suggested amendments, and their consent to the letter being sent to the complainant.
• All communications between CFPA and the complainant must be provided to CFPA’s legal counsel and PI insurer for their input and consent prior to the communication being sent to the complainant. This process should be coordinated by CFPA’s legal counsel.
• If the complainant is unsatisfied with CFPA’s determination and proposed action, CFPA will direct the complainant to AFCA.

5.0 PI Insurance

CFPA currently holds the following Professional Indemnity Insurance:

Insurer

Level of cover

Policy

SURA

$2,500,000 any one claim and in the aggregate

SPR-PRI-10010470

In accordance with ASIC’s Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees, CFPA will assess annually,
A.
liability for claims brought through AFCA, taking into account ‘the maximum liability that has, realistically, some potential to arise’ in connection with any particular claim against the AFSL and all claims for which the AFSL could be found liable; and
B.
the nature of the financial services business carried on, including:
i. the volume of business;
ii. the number and kind of clients;
iii. the kind or kinds of business; and
iv. the number of representatives.
Further, the Compliance Committee review and record at each quarterly Compliance Committee Meeting, ongoing or potential claims against the License.

6.0 External Dispute Resolution

CFPA is a member of the Australian Financial Complaints Authority, Member ID: 76490.

7.0 Incidents and Breaches

CFPA will enter all incidents and breaches, and their subsequent assessment and outcome into the Incident and Breach Register.
The Incident and Breach Register is reviewed at the quarterly Compliance Committee Meeting in order to identify and address systemic or recurring issues.

8.0 Record Retention

CFPA’s record keeping policy requires retention of records for as long as required by applicable laws, rules and regulations, which may change from time to time.