ASIC financial adviser exam, Conduct rules, breach reporting, DDO and AFCA question: dispute resolution system under s912A(2) of the Corporations Act

ASIC examConduct rules, breach reporting, DDO and AFCA

Fenwick Advice is applying for an AFS licence so it can give personal advice to retail clients. Which of the following is NOT a required part of its dispute resolution system under s912A(2) of the Corporations Act?

A An internal dispute resolution procedure that meets ASIC's standards and requirements
B A final response to every complaint within 10 business days of receipt
C Internal dispute resolution that covers complaints about all the financial services covered by the licence
D Membership of the AFCA scheme

Show the answer and explanation

Answer: B. A final response to every complaint within 10 business days of receipt

Section 912A(2) of the Corporations Act 2001 (compilation 19 Sep 2026) requires an internal dispute resolution procedure that complies with ASIC's standards and requirements and covers complaints about all the financial services covered by the licence, plus membership of the AFCA scheme, so those three are all required. A final response within 10 business days is not: ASIC's standards set a maximum of 30 calendar days for a standard complaint (RG 271.56).

Common mistake

IDR plus AFCA membership is the statutory system; 10 business days is no part of it.

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