Insurers can provide further feedback on rules for the new Australian Financial Complaints Authority (AFCA), which is due to start operating from next July.

AFCA will replace the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal to provide a one-stop shop for complaints, under legislation currently before Federal Parliament.

A transition team led by former Reserve Bank assistant governor Malcolm Edey will advise on the terms of reference, governance and funding arrangements.

AFCA is to have a monetary limit of $1 million and compensation cap of $500,00.

“The transition team will consult on sub-limits, such as for disputes about general insurance broking, for inclusion in AFCA’s [terms of reference],” the Government says.

Insurance Council of Australia CEO Rob Whelan says the industry welcomes the opportunity for stakeholder consultation on the terms of reference.

“It looks forward to the delivery of streamlined consumer experiences and efficiencies created by sharing resources and back-office functions and services,” he said.