Advisers still low on AFCA’s complaint lists

Mike Taylor

Managing Editor/Publisher, Financial Newswire

7 October 2021

Complaints about financial advice remain almost miniscule when compared to those relating to superannuation and banking, according to the latest data released by the Australian Financial Complaints Authority (AFCA).

Confirming earlier analysis, the latest AFCA data reveals that banks lead the way in terms of complaints received by the authority, followed by general insurers, credit providers, superannuation funds and non-cash payment systems.

And breaking down the data, it reveals that only Commonwealth Financial Planning, AMP, Dixon Advisory and ACDEX made the list of complaints within AFCA’s data cube.

Topping the list of superannuation funds named within the AFCA data cube was big industry fund AustralianSuper, followed by REST, and the National Australia Bank’s NULIS and NM Superannuation.

While complaints about the four major banks topped the list, AFCA noted that complaints against them had fallen by 7% in 2020-21.

AFCA also took a shot at “paid representatives” who get involved in the process.

AFCA chief ombudsman, David Locke noted that 5% of complainants were assisted by a paid representative in 200-21 but added, “AFCA is working to ensure a small number of paid representatives who are not acting in good faith are prevented from exploiting AFCA’s process, either by delaying matters or by lodging complaints lacking merit.”

“On more than 200 occasions in 2020-21 AFCA used its powers to refuse to continue considering a complaint because of a representative’s conduct. AFCA works directly with the complainant when this occurs.”