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Adapting to RG271

ASIC has recently updated their guidance and requirements around RG 271 Internal Dispute Resolution. In particular, the legislation expands upon:

  • The definition of ‘complaints’ and ‘small businesses’;
  • Shorter timeframes for responses; and
  • The identification and systemic management of complaints and issues.

Organisations need to adapt to this regulatory update by 5 October 2021. The full overview can be found here.

Who does this affect?

Australian financial services (AFS) licensees, unlicensed product issuers, unlicensed secondary sellers, trustees of regulated superannuation funds (other than self-managed superannuation funds (SMSFs), trustees of approved deposit funds, retirement savings account providers, Australian credit licensees (credit licensees) and unlicensed carried over instrument lenders (unlicensed COI lenders).

Boards and executive committees are responsible for adapting to and managing the updated requirements.

What does this mean for organisations?

There is increased pressure on an organisation’s management and systems to interpret the RG 271 legislation; detect and process complaints in a timely manner; and report specific metrics to the board/executive committees.

According to ASIC, organisations should not rely solely on front line staff to identify and manage complaints. Rather, there should be systems and procedures in place to do so, and staff should be adequately equipped to analyse and escalate possible issues and report on the outcome of investigations.

Potential challenges for organisations

By October 5, 2021, organisations may need to strengthen their management and oversight of the complaints process, including turnaround times, or else face enforcement measures from ASIC.

Staff will need to be upskilled or educated to ensure that the human intelligence component of the process is both adequate and timely.

Further, definitions within the legislation need to be uniformly understood within an organisation. For instance:

‘[An expression] of dissatisfaction made to or about an organization, related to its products, services, staff or the handling of a complaint, where a response or resolution is explicitly or implicitly expected or legally required’. – AS/NZS 10002:2014.

An organisation will need to define and understand concepts such as ‘expression of dissatisfaction’ and ‘explicitly or implicitly’ in order to escalate and resolve complaints.

How organisations can respond and adapt

Organisations should seek to define and understand RG 271’s key concepts, and drive this understanding from the top down.

Organisations can also make use of Human-In-The-Loop (HITL) intelligence, a combination of human and artificial intelligence (AI) that utilises both the technological efficiencies and outputs of AI and the unique insights and subtlety of human intelligence, resulting in the most accurate model for complaints resolution.

Call Journey’s software solution uses this HITL machine learning model to analyse conversations within a business, such as those between financial advisers and consumers. Features such as a sophisticated and programmable rules engine, speech and acoustic analysis, and easy integration with an organisation’s existing data and reporting ecosystem make it quick and simple for an organisation to adapt to the upcoming legislative changes.

Next steps for organisations

  1. Make sure your organisation’s board and/or executive committee is aware of the upcoming legislative changes, including their responsibilities. ASIC’s full overview can be found here.
  2. Assess your organisation’s capacity to meet the enforceable standards outlined in the new RG 271 legislation
  3. Implement any systemic changes or resourcing to meet the new standards. You can learn more about Call Journey’s VoiceAI or escalate the process by scheduling a discovery session today.

Download the essential guide for RG 271 today >>

Merryl Cepe
Merryl Cepe
Merryl is currently the PR and Content Marketing Specialist at Call Journey. She's a couch potato and loves to sleep, eat and watch sloppy Kdramas. She loves each of her 6 dogs equally, if only they would take baths regularly.

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