1 |
FICS is a private company, formed in 1999 by a group of AFSL holders, as an external dispute resolution scheme It is fully paid for by the planning industry. |
2 |
At some time after its inception, ASIC made it a mandatory condition of holding an AFSL was membership of an AFSL. |
3 |
Since its inception many groups have applied to become an approved external resolution scheme, but they have all been rejected by ASIC. |
4 |
FICS has no power at law. Its only control over planners is they require FICS membership to hold an AFSL. |
5 |
A panel, consisting of three-members with the "appropriate" qualifications, judges each case. The names, and qualifications of the judging panel remain anonymous to both parties. |
6 |
The arbitration process is somewhat unusual in that the opposing parties never meet during the process. A three-person panel judges the case on the basis of hard copy material supplied by the participants./td> |
7 |
FICS charges the relevant AFSL holder $6,600 for each panel it convenes. |
8 |
The scheme operates on a set of defined rules. One set available to investors is on the FICS website. The other set, relating to members is not available to investors |
9 |
The current sets of rules for both investor and member has not been altered since 1999. |
10 |
Under the scheme there is no right of appeal. |
11 |
An investor forgoes the right to pursue all other avenues of recovery when they make a claim through FICS. |
12 |
An investor making a claim on FICS agrees not to discuss the case with anyone, or disclose the result afterward, |
13 |
The destruction of all records takes place at the end of a case. |
14 |
Although nowhere defined on the FICS website, the current limit and investor can claim is $100,000 per product. |
15 |
Again nowhere defined is the very peculiar rule that an investor can claim up to the limit on and investment of $100,000, but cannot make a claim if the original investment exceeds $100,000. |
16 |
Another undefined anomaly is the fact that if an investor say received $10,000 in interest on a $100,000 investment, then the maximum the can claim is $90,000! Just as mysterious as to why this impost was charge in the past, FICS are no longer charging it! FICS has been consistent in not explaining either decision! |