In Australia's financial sector, the Internal Dispute Resolution (IDR) framework and regulatory guide 271 (RG 271) are pivotal components in ensuring fair, transparent, and effective handling of consumer and small business complaints.

RG 271, established by the Australian Securities and Investments Commission (ASIC), sets stringent guidelines for financial services to resolve disputes internally. It outlines the obligations of these firms to have an IDR procedure that complies with ASIC's standards, alongside their membership with the Australian Financial Complaints Authority (AFCA).

The development of IDR in Australia reflects the changing needs of the Australian financial services sector. The IDR standards that have emerged from the findings of the Ramsay Review and have been further shaped by amendments to financial legislation, in particular RG 271, reflect the industry's commitment to protecting the rights and interests of consumers.

If customers of a financial services provider have a concern, what does this mean for them?

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