AFCA Leverages Enhanced Standards to Minimize Advice Complaints

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Interestingly, the number of new complaints AFCA received in this sector fell to 3,559, a notable decrease of 26% from the preceding year. According to its annual report, AFCA attributed this decline to the positive impact of rising educational standards and heightened professionalism within the financial advisory industry.

However, challenges persist, particularly concerning the controversial case of Dixon Advisory, which continues to contribute to overall complaints. Without the Dixon Advisory-related grievances, complaints hit an all-time low of 2,709.

Lead Ombudsman for investments and advice, Shail Singh, noted during AFCA's recent member forum that outcomes were not universally favoring complainants. For instance, one claimant involved with Dixon did not suffer harm despite following conflicted advice.

Moreover, Senior Ombudsman Patrick Hartney highlighted, “When compared to what AFCA deemed appropriate advice, the complainant was actually better off with the conflicted advice result.” Hartney explained how cookie-cutter approaches to advice might have variable impacts based on individual circumstances, proving beneficial to some despite being generally suboptimal.

The AFCA annual report further elaborated that nearly half (44%) of the complaints they handled were resolved during the "rules review" phase. This stage, where issues are examined for jurisdictional appropriateness, requires detailed decision-making, explaining the average resolution timeframe of 129 days. Such intricate processes have been partly responsible for protracted case durations.

While complaint volume has decreased, the top issue remains inappropriate advice, which accounted for 706 (20%) of all complaints. Other recurring issues include confusion over the classification of Self-Managed Super Funds (SMSFs) and wholesale client status, often leading to misapplication of financial thresholds, an insight noted by Sidoti, the Senior Ombudsman.

“It’s pretty clear that actually doesn’t apply in circumstances where advice is given to a trustee to an SMSF,” confirmed Sidoti. Misapplication of these financial thresholds can categorize SMSFs inaccurately, with serious advisories issued for small balance SMSFs lacking diversification.

With market volatility influenced by national political events, the authority has observed complaint trends shifting accordingly. Beyond handling regular disputes, AFCA has now been endorsed by the government to lead an external resolution scheme under the Scams Prevention Framework, a major initiative in the governmental “war on scams”, as stated by Minister Stephen Jones.

The pilot will cover three key sectors: banks, telecommunications, and digital platforms, illustrating an expansive approach to scam management involving interconnected industries.

Published:Monday, 28th Oct 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

RBA Card Data Points to Ongoing Pressure on Household Debt

16 Jul 2026: Paige Estritori

The Reserve Bank of Australia�s latest retail payments figures, released on 7 July 2026, add another useful snapshot of how Australians are managing day-to-day spending and short-term debt. In May 2026, total purchases on Australian-issued cards reached $99.7 billion, with credit and charge cards accounting for $40.7 billion and debit cards making up $59.0 billion. Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check! - read more

Rising Credit Card Debt Sends a Warning to Borrowers

16 Jul 2026: Paige Estritori

Fresh credit card figures suggest many Australians are still leaning on high-interest debt to manage household pressure, even as lenders continue to scrutinise borrowing capacity closely. Canstar’s review of Reserve Bank credit card data shows personal credit card debt attracting interest reached $19.4 billion in May 2026, up $61 million for the month. - read more

New July Caravan Loan Data Highlights Why Buyers Need to Compare Carefully

16 Jul 2026: Paige Estritori

Fresh caravan loan comparison data published on 15 July 2026 points to a market where headline rates can look attractive, but the difference between a strong application and a weaker one remains significant. For Australians planning to buy a caravan, camper trailer or motorhome, the message is clear: do not judge a loan by the advertised rate alone. - read more

What July�s Cheapest Car Loan Rates Mean for Australian Buyers

16 Jul 2026: Paige Estritori

Australian car buyers have a fresh benchmark for what a competitive loan may look like, with Canstar�s July 2026 car loan snapshot showing some secured new and near-new car loans advertised from the high five per cent range. For households already juggling fuel, insurance, registration and cost-of-living pressures, that headline number may look appealing. - read more

What July�s Boat Loan Rate Update Means for Buyers

15 Jul 2026: Paige Estritori

Australian boat buyers have a fresh snapshot of the lending market, with Canstar�s boat loan comparison data updated on 15 July 2026. The update shows indicative unsecured boat loan offers for a $20,000 loan over three years, with some listed comparison rates starting from 5.95% for applicants who meet strong credit criteria. - read more

Click for more Finance News