Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1052b
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1052B
Character Range: 4639899–4641271

1052B  Directions to increase limits on the value of claims
 (1) If, under the AFCA scheme, there are one or more limits on:
 (a) the value of claims that may be made under the scheme; or
 (b) the value of remedies that AFCA may determine under the scheme;
ASIC may give AFCA a written direction requiring the limit, or some or all of the limits, to be increased.
Note 1: One of the operational requirements for the scheme is that there are no such limits for superannuation complaints (see paragraph 1051(4)(f)).
Note 2: This power to give directions extends to any application of the AFCA scheme in relation to members of the scheme that are not providers of financial products or services.
 (2) However:
 (a) ASIC must not give a direction under this section unless ASIC has given AFCA written notice of at least 1 month of ASIC's intention to issue the direction; and
 (b) a direction under this section must not apply in relation to complaints AFCA received before ASIC gives the direction.
 (3) AFCA must comply with a direction made under this section.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).
 (4) If AFCA fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that AFCA comply with the direction.
 (5) A direction made under this section is not a legislative instrument.