The Australian Securities and Investment Commission (ASIC) has released 2 revised regulatory guides on dispute resolution schemes: RPG 139 and RPG 165. 

The changes announced by ASIC will also introduce a new "compensation caps" approach which means all EDRs will be able to hear cases up to the value of $500,000, the level of the retail client test from 1 January 2010, even though the amount of compensation they can award is less. The amount of compensation schemes will be able to award is a maximum of $280,000, or $150,000 if the claim relates to insurance brokers from 1 January 2012.

Currently, the maximum award amount for EDR schemes is inconsistent and individual schemes cannot hear cases that are worth more than their own monetary limit, which limits coverage.

The guidelines also complement the Government's recent release of draft legislation creating single, national regulation of consumer credit, including mortgages, credit cards, payday lending and margin lending, and access to low cost, timely dispute resolution

Most new requirements, including the move from monetary limits to compensation caps, will be implemented from 1 January 2010. The new level for compensation caps will be implemented from 1 January 2012 to allow industry time to transition.

See Table 2 here for details of the transition for each EDR scheme.