AFCA Leverages Enhanced Standards to Minimize Advice Complaints
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.
The Australian Financial Complaints Authority (AFCA) demonstrated significant progress in managing investment and financial advice issues in the past year.
The organization reported closing 4,118 complaints in the sector during the 2024 fiscal year, marking an impressive 82% increase in resolved cases compared to the previous year.
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 scamsâ€, 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.
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.
NSW has moved closer to making apartment EV charging a practical part of vehicle ownership, with the Strata Schemes Legislation Amendment (Miscellaneous) Act 2026 assented on 23 October and government guidance indicating further reforms planned to start in 2027. For electric vehicle buyers in strata buildings, the change is not just a property-law update; it could affect how households think about finance, charging access and the real cost of switching from petrol to electric. - read more
The Reserve Bank of Australia's latest parliamentary testimony has given motorcycle buyers a timely reminder that borrowing conditions remain sensitive to inflation, lender pricing and household budget pressure. Governor Michele Bullock told a Senate economics committee on 28 October 2026 that inflation has remained above target, the cash rate has risen by a cumulative 100 basis points this year, and the Monetary Policy Board will meet again next week to assess whether the tightening already delivered is enough. - read more
ASIC’s latest review of mortgage broker conduct has put a spotlight on how loan recommendations are explained, documented and challenged when a cheaper option is available. Although the review focused on home loan brokers, the practical lesson is broader: borrowers should understand not only the advertised rate, but also why a particular loan structure, lender or feature is being presented as suitable. - read more
Australia’s electric truck conversation has shifted from vehicle availability alone to the practical question of where, when and how commercial vehicles will charge. Ampol’s October 2026 activity has made that shift clearer, with the company announcing a proposed acquisition of Evie Networks and a separate memorandum of understanding with Foton Mobility Distribution to explore charging solutions for electric commercial vehicles. - read more
ASIC’s 13 October 2026 review of major mortgage broker groups has delivered a timely reminder for borrowers: a loan recommendation should be understandable, evidence-based and clearly connected to the customer’s needs. The regulator found that broker practices generally aligned with its guidance, but also identified gaps in how some higher-cost loan recommendations, supervision processes and complaints were handled. - read more
The commercial vehicle market in Australia is a cornerstone of the transportation and logistics industries, with trucks playing an indispensable role. Whether for long-haul deliveries across the vast distances of the continent or for urban distribution, trucks are critical assets for businesses and entrepreneurs alike. This significance makes it essential for commercial vehicle buyers to understand the dynamics of truck resale values in Australia. - read more
Stepping into the realm of commercial truck financing can be a highway riddled with complex terms and conditions. Understanding commercial truck loans is not only about getting the keys to a new vehicle; it's a crucial investment in your business's future. As a borrower, you need to navigate through the fine print to find a loan that fits like a glove. - read more
As a trucking business owner in Australia, finding the right insurance is crucial to the protection of your business. To achieve this, it is important to first understand your specific business needs. Here are some factors to consider: - read more
Truck loan repayments are shaped by the amount borrowed, interest rate, loan term, repayment frequency, fees, deposit and any balloon or residual amount. Understanding these inputs can help Australian business owners interpret repayment calculator results more clearly before comparing finance options. - read more
Trucks play a pivotal role in the Australian logistics and transport industry, serving as the lifeblood that keeps commerce flowing. The dependable rumble of engines crisscrossing the nation's highways is more than just a symbol of industry; it's a critical component of productivity and economic stability. Without these workhorses facilitating the timely movement of goods, the Australian market would face significant challenges meeting the demands of both businesses and consumers alike. - read more
Knowledgebase
Negative Amortization: A situation in which the loan payment for any period is less than the interest charged over that period, causing the loan balance to increase.
No comments yet. Be the first to share your thoughts.