Australian Financial Complaints Authority receives 29,873 complaints in first five months of operations

Maria Nikolova

Credit and general insurance products triggered most complaints, whereas investments accounted for 5% of all complaints during the five months to March 31, 2019.

The recently launched Australian Financial Complaints Authority (AFCA) has been publishing regular updates about its work. The body has just posted data about complaints handled during the first five months of its operations, that is, the period from November 1, 2018 to March 31, 2019.

The external dispute resolution scheme received 29,873 complaints during the five-month period, up from the 23,681 complaints received in the first four months of its operations. Credit and general insurance topped the list of products that triggered most complaints. Investments accounted for 5% of all complaints received during the five-month period.

The top five issues for complaints concerning investments include:

  • Failure to follow instructions/agreement – 287;
  • Inappropriate advice – 182;
  • Failure to act in client’s best interests – 119;
  • Incorrect fees/costs – 108;
  • Service quality – 92.

Let’s stress that membership in AFCA is compulsory for all AFS licensees, Australian credit licensees, superannuation trustees and other financial firms that provide services to retail clients. Earlier this year, the Australian Securities and Investments Commission (ASIC) has demonstrated that firms’ membership in the new dispute resolution scheme is crucial. The regulator cancelled the Australian financial services (AFS) licences of two financial services providers due to their failure to become members of AFCA scheme.

The businesses whose licenses got taken away are both NSW-based. Sydney Business Accounting’s licence cancellation took effect on February 14, 2019, and A G Calleia & Co’s licence was cancelled on February 15, 2019.

Read this next

Technology

Spotware Systems unveils version 4.4 of Desktop and Web terminals

Spotware Systems, a technology provider for the electronic trading industry, has launched updated versions of its cTrader Desktop and Web terminals, which add new functionality to join a roster of advanced trading capabilities.

Institutional FX

Integral reports best monthly FX volume in 6 months

Currency trading on Integral’s platforms rose in September to its highest levels since March 2022 as increased volatility across financial markets led to greater activity on institutional FX venues.

Retail FX

OctaFX pre-launches new trading platform as MT4 and MT5 remain suspended by Apple

Like many other brokers within the FX and CFD industry, OctaFX had all its eggs in one basket, MetaQuotes, only offering access to MetaTrader 4 and MetaTrader 5. OctaTrader will provide the much needed change.

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

<