The Australian Financial Complaints Authority (AFCA) has this week released a report summarising its results over the first six months of operation.
In what represents a 35% increase on predecessor schemes, AFCA has confirmed receipt of over 35,000 complaints in the six month period since opening its doors in November 2018. AFCA says that it anticipates a further surge in complaints over the coming months with an expectation of about 80,000 complaints in the first year of operation.
Of all complaints received, 74% were resolved by agreement or in favour of the complainant with $83 million paid in settlements.
The above figures do not take into account AFCA’s newest jurisdiction, dealing with ‘legacy complaints’ relating to conduct dating back to 1 January 2008. AFCA only began receiving legacy complaints from 1 July 2019 and will continue to do so until 30 June 2020.
If there remained any doubt, the prospect of up to $200 million in settlements arising out of AFCA in its first 12 months of operation should put all industry members on notice of the considerable risk posed by the jurisdiction.
A copy of AFCA’s full six month report can be found here.