The Australian Prudential Regulatory Authority (APRA) has signed a new Memorandum of Understanding (MoU) with the Austrian Financial Complaints Authority (AFCA) for continued cooperation ‘to support a fair and efficient financial system’. AFCA, a membership-based external dispute resolution (EDR) body for Australian consumers, announced the development on Friday, noting that the memorandum outlines the basis for engagement between the non-profit and the prudential regulator.

The agreement covers areas of cooperation and coordination such as information sharing, AFCA said. David Locke, AFCA’s CEO and Chief Ombudsman, noted that the memorandum reflects the EDR organization’s “intention to maintain a proactive, open and collaborative relationship.”

“While we have distinct mandates and responsibilities, we have the common goal of protecting consumers and contributing to the maintenance of consumer confidence in Australia’s financial system,” Locke explained.

Shift in Accountability towards Consumers

Commenting on the collaboration between both authorities, Ella Rosenberg, an expert on counter-terrorism in financial technology, noted that the agreement represents a partial shift in accountability towards the customers of financial institutions in Australia.

“[The] involvement of an ombudsman is a significant sign from the Australian Government that Milton-like cases will not be tolerated and the issuers of these licenses and their respective legal counsel are also under the watchful eye,” Rosenberg told Finance Magnates.

In addition, the agreement shows that Australia is taking the lead with consumer protection, having learned from the mistakes of its European counterparts, the regulatory expert on European Union laws added, further noting that country is signaling that it will not tolerate fraud and dismissal by its regulator.