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AFCA inundated with complaints
Since it opened its doors on 1 November, the Australian Financial Complaints Authority (AFCA) reported it received over 13,000 phone enquiries, and 6,522 complaints from consumers and small businesses about financial products or services.
The regulatory body said it averaged 310 complaints per business day, and experienced an increase of more than 47 per cent in complaints received compared to its predecessors.
CEO and chief ombudsman, David Locke, said the number of calls and complaints was on par with what AFCA was expecting, and around 15 per cent of the complaints received in the month had been finalised already.
AFCA said the majority of complaints (45 per cent) were about credit, with general insurance causing some distress (21 per cent), followed by deposit taking (10 per cent) and superannuation (eight per cent).
Consumers showed their angst with the banks, with 2,367 complaints aimed at banks, 1,159 complaints aimed at general insurers and 1,040 complaints aimed at credit providers.
Locke said AFCA was currently investigating 84 definite systemic issues and four potential serious contraventions and other breaches.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
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