Shail Singh

More consumers who use digital assets such as cryptocurrency, wrapped tokens, stablecoins, tokenised securities and digital asset wallets can now access the Australian Financial Complaints Authority (AFCA)’s free and independent service.

This follows ASIC’s clarification about when a digital asset is considered a financial product. If a business provides services involving financial products, it generally needs to hold an AFSL and be a member of AFCA.

The new requirements are set out in ASIC’s Information Sheet 225 (INFO 225).

Until recently, there was some uncertainty about which digital assets were regulated as a financial product under the Corporations Act, which meant digital asset companies were not required to be members of AFCA.

While some companies chose to join AFCA voluntarily, membership was not mandatory, so many consumers had no access to AFCA if something went wrong.

Consumers using these products can now bring disputes to AFCA if they are unable to resolve them directly with their provider, if the firm is an AFCA member.

“This requirement gives consumers a clear pathway to complain if they are using these products and something goes wrong,” AFCA’s Lead Ombudsman for Investments and Advice Shail Singh said.

“Digital assets are increasingly part of the way people manage and move money, so it’s important consumers have access to independent dispute resolution service if they need it,” he said.

“AFCA has handled more than 1,000 complaints about digital assets over the past six years so we have experience dealing with the types of issues that can arise in this sector.”

Consumers can use AFCA’s find a financial firm tool to check whether a digital asset platform is an AFCA member.

Organisations providing digital asset services that are AFCA members include:

• Web3 Ventures Pty Ltd
• Tiiik Pty Ltd (trading as Stables Money)
• AUDC Pty Ltd
• Swyftx Pty Ltd
• Bit Trade Pty Limited (Kraken Exchange)
• Damisa Technologies Pty Ltd
• TAU Pty Ltd (AUDX Token)
• Beaufort Fiduciaries Pty Ltd
• Pepperstone Digital Pty Ltd (trading as Pepperstone Crypto)
• HBGL Pty Ltd
• Elbaite Pty Limited
• Tazapay Pty Ltd
• CoinJar Australia Pty Ltd
• Cloudtechx Pty Ltd (trading as CobWeb Pay)
• Stormrake Pty Ltd
• Pay It Now AUS Pty Ltd
• PAYBTC Pty Ltd
• Coinbase Australia Pty Ltd
• BTC Markets Pty Ltd
• Ontoro Pty Ltd
• Investbybit Pty Ltd (trading as Binance Australia)
• Digitex Corp Pty Ltd
• Gate Information Pty Ltd
• Web3StartUps Pty Ltd
• MoonPay Aus Pty Ltd
• Independent Reserve Pty Limited (trading as Bitcoin.com.au)
• Cointree Pty. Ltd.
• Peer TC Pty Ltd (trading as Nex Capital)
• Canvas Digital Pty Ltd
• Nexo Australia Pty Ltd
• TWMT Pty Ltd (trading as Cointash Au)
• Digital Surge Pty Ltd
• Amotius Operations Pty Ltd
• FinconnectX Pty Ltd
• ByTeatlas Pty Ltd (trading as Coinbyte)
• Osl Au Pty Ltd
• Layer 8 Networks Pty Ltd (trading as CF Preferred)
• Digital Axi Pty Ltd
• Legger Pty Ltd
• Webull Pay (Australia) Pty Ltd
• Swapped APS
• 1064x Pty Ltd
• Indexer Pty Ltd
• Trek Labs Pty Ltd
• Skyview Vintage Pty Ltd
• Superhero Securities Limited
• Living Room of Satoshi Pty Ltd
• eToro AUS Capital Limited
• Revolut Payments Australia Pty Ltd
• Bamboo 61 Pty Ltd
• Vield Pty Ltd
• Finance & Systems Technology Pty Ltd
• Digital Reserve Pty Ltd
• Dcx Technology Pty Ltd
• Day1 Exchange Pty Ltd
• Real World Assets Proprietary Limited
• Flash Partners Pty Ltd (trading as Flash Fx)
• Casey Block Services Pty Ltd (trading as Coinspot)
• integratedCapital Pty Ltd
• Digital Wallet Pty Ltd
• Daytek Capital Pty Ltd
• Foris Gfs Australia Pty Ltd
• Foris Dax Au Pty Ltd (trading as Crypto.com)
• IUX Markets Au Pty Ltd.
• Webull Securities (Australia) Pty. Ltd.
• Immersve Pty Ltd
• Cryptospend Pty Ltd

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David Locke

The Australian Financial Complaints Authority (AFCA) and the Telecommunications Industry Ombudsman (TIO) have signed a Memorandum of Understanding (MoU) to strengthen coordination between the two organisations ahead of the Scam Prevention Framework (SPF) taking effect.

The MoU sets out how AFCA and TIO will work together, including sharing information, staying in regular contact and referring complaints where both organisations are involved.

The agreement will also ensure complaints go to the right scheme and avoid the same issue being considered by both organisations.

The MoU has been signed as the SPF expands AFCA’s jurisdiction to consider the role of telecommunications companies, banks and digital platforms in scam complaints. The multi-party EDR service under the SPF will be the first of its kind in the world and recognises that modern scams often involve multiple organisations across different sectors.

AFCA Chief Executive Officer and Chief Ombudsman David Locke said the agreement will help make the complaints process as straightforward as possible for both consumers and telecommunication companies.

“Working closely with the TIO will help us make the complaints process as clear and straightforward as possible for consumers and telecommunications companies, particularly where a complaint involves both organisations,” the Chief Ombudsman said.

AFCA’s Chief Scams Officer Dave Lacey said the agreement will help make sure complaints go to the right scheme without unnecessary back and forth for consumers, at a time when they may already be dealing with the stress and uncertainty of a scam.

“It will also give industry greater clarity and help avoid the same conduct being considered by both organisations,” the Chief Scams Officer said.

Telecommunications Industry Ombudsman Cynthia Gebert said strengthening connections with AFCA will make it easier for people to access the specialist support they need, sooner.

“People shouldn’t have to navigate multiple pathways for help. Stronger collaboration between AFCA and TIO means consumers benefit from our combined expertise and can focus on resolving their concerns, knowing they’ve got the right support for their situation.”

AFCA recently welcomed 118 new members under the SPF. To date, 98 telcos and 16 digital platforms have joined AFCA in preparation for the external dispute resolution scheme for scam complaints, which will commence on 31 March 2027.

New members include major telcos and entities under the SPF digital platform definition including Apple, Google, Meta, Microsoft, TikTok and X.

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Deborah Jenkins

Australians lodged a record 119,949 complaints with the Australian Financial Complaints Authority (AFCA) in 2025–26, which is the highest number on record and the third consecutive year complaints have exceeded 100,000.

AFCA’s Chief Customer Officer Deborah Jenkins said three years of more than 100,000 complaints highlights the challenges many consumers continue to face in a difficult economic environment.

“These numbers highlight the impact that ongoing cost-of-living challenges and economic uncertainty are having on consumers, and the flow-on effects these conditions can have across the financial system,” Ms Jenkins said.

“Every complaint represents someone’s experience, and collectively they provide a view of where consumers are struggling. By working with us and acting on these insights, firms can help prevent recurring issues that lead to complaints with AFCA,” the Chief Customer Officer said.

Overall, the three most complained about financial products in 2025-26 were personal transaction accounts, motor vehicle insurance and credit cards. The top three issues were delay in claim handling, service quality and claim rejection.

Banking and finance remained AFCA’s largest complaint area, with financial difficulty complaints increasing 17 per cent and credit reporting complaints rising 22 per cent across the year, with a steep rise in recent months.

“These numbers point to opportunities for firms to strengthen hardship support, improve communication with customers and ensure accurate credit reporting, helping resolve issues before they become disputes,” the Chief Customer Officer said.

While complaint volumes increased across all areas during 2025-26, the largest growth was driven by major investment collapses and rising superannuation disputes. AFCA’s preliminary data snapshot as at June 30 showed:

• Banking and finance 66,971 complaints (up 23%)
• General insurance 36,022 complaints (up 5%)
• Superannuation 8,755 complaints (up 42%)
• Investments and advice 6,542 complaints (up 56%)
• Life insurance 1,561 complaints (up 3%)

Investments and advice complaints increased by 56 per cent, primarily driven by the Shield Master Fund and First Guardian collapses. Complaints alleging failure to act in the client’s best interest remain the top issue with a 65 per cent increase on last year, up to 2,083.

“While most financial advice firms do the right thing, we are seeing a significant number of complaints stem from major financial collapses that have affected thousands of consumers. These matters are complex and can be incredibly stressful for individuals and their families,” Ms Jenkins said.

Superannuation complaints increased 42 per cent during the year, with delays in claim handling, service issues and rejection of superannuation insurance claims emerging as the most common issues. Rejection of claim complaints increased 82 per cent compared with the previous year.

Scam complaints rose 12 per cent to 6,706 following a decline the previous year, reflecting the continued threat scams pose to Australian consumers.

“Scammers are becoming more sophisticated in how they target consumers. Resolving disputes is important but preventing scams before they happen is even better. That’s why broader scam prevention efforts are so important,” Ms Jenkins said.

While general insurance complaints remained persistently high, Ms Jenkins said the data shows early resolution remains an important feature of the system, with 43 per cent of complaints resolved before progressing through AFCA’s formal decisions-making process.

However, she said there is still opportunity to reduce overall complaint volumes, with comprehensive vehicle insurance again the most complained about insurance product, and rejection of claim complaints increasing by 47 per cent this year.

Since starting operations in 2018, AFCA has received about 690,000 complaints, helping to secure $2.6 billion in compensation or refunds for consumers and small businesses. AFCA’s systemic issues work, where it identifies wider issues than a single complaint, has resulted in 6 million people receiving more than $398 million.

“Complaint data is one of the clearest signals firms have about what’s going wrong for their customers. Firms that use those insights to improve are more likely to prevent the same problems happening again,” the Chief Customer Officer said.

“We’ll continue to share the insights we’re seeing through our complaints data with firms, so they have the opportunity to identify emerging issues early and improve outcomes for their customers.”

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June Smith

The Australian Financial Complaints Authority (AFCA) welcomes confirmation by the Federal Government that it will be the single, centralised External Dispute Resolution (EDR) scheme for scam complaints under the Scams Prevention Framework (SPF).

The SPF expands AFCA’s jurisdiction to consider the role of banks, telcos and digital platforms in scam complaints.

AFCA will be the one-stop-shop for consumers who have not been able to resolve their scam complaint through Internal Dispute Resolution.

The multi-party EDR service for SPF will be the first of its kind in the world and recognises the sophistication of modern scams, which often involve multiple organisations across different sectors.

Designated banks, telcos and digital platforms will be required to be AFCA members from Tuesday 1 September 2026, giving consumers access to an independent external dispute resolution pathway for complaints under the Scam Prevention Framework.

AFCA will be able to deal with scam complaints under the new framework from 31 March 2027.

“We welcome the Government’s announcement and the confidence it has placed in us to act as the external dispute resolution scheme under the Scams Prevention Framework. We have significant experience handling complex complaints at scale, and we’ll be using that experience to build an effective and accessible service,” said AFCA’s acting Chief Executive Officer and Chief Ombudsman Dr June Smith.

“We recognise the size of the task and look forward to working closely with all stakeholders to deliver a robust, fair and efficient dispute resolution process,” said Dr Smith.

AFCA recently appointed David Lacey as its inaugural Chief Scams Officer (CSO) to lead the establishment of the new scams EDR scheme.

“Scams are one of the most significant issues affecting consumers today. They are increasingly sophisticated and they leave people facing devastating financial and emotional consequences” said the Chief Scams Officer.

“We recognise the complex nature of modern scams and the need for fair outcomes for victims and the organisations involved. We look forward to welcoming new members to AFCA.”

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The consultation, running until 26 June, follows a recent legislative change which introduced a ban on life insurers soliciting or using protected genetic information.

The Australian Financial Complaints Authority (AFCA) is opening public consultation on proposed amendments to the rules that govern its work, following changes to genetic testing protections in life insurance.

The consultation, running from 1 June to 26 June, follows a recent legislative change which introduced a ban on life insurers soliciting or using protected genetic information (namely adverse genetic testing results) when offering life insurance.

“These proposed amendments will ensure we can consider complaints about the use of genetic testing in life insurance in line with the new protections for consumers. This will enable AFCA’s Rules to keep pace with changes in the law,” said Michelle Kumarich, Executive General Manager Jurisdiction and Systemic Issues.

AFCA is proposing changes to Rule C.1.4b) and d) to enable it to consider complaints specifically about the use of adverse genetic testing results.

Subject to consultation and regulatory approval, these amendments are expected to take effect from 8 October 2026.

“Engaging with stakeholders through this consultation is essential to ensuring our Rules continue to meet the needs of consumers and financial firms. We encourage all stakeholders, particularly our life insurance members, to have their say during the consultation.”

The Consultation page on the AFCA website provides more information on how to submit a response.

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AFCA Chief Executive Officer and Chief Ombudsman David Locke said David Lacey will lead the expansion of AFCA’s jurisdiction to consider the role of banks, telcos and digital platforms in scam complaints.

“As founder and CEO of IDCARE, David brings unparalleled experience in understanding the profound impact scams have on individuals and their families,” said the Chief Ombudsman.

“David has spent years working directly with scam victims, and that perspective will be critical in shaping a scams ombudsman service that is accessible, fair and can effectively resolve complex issues involving multiple parties.”

AFCA’s external dispute resolution service will be a key component of the Government’s Scams Prevention Framework and introduces an expanded area of responsibility for AFCA, requiring additional capabilities, systems and cross-sector coordination with new industries.

David Lacey joins AFCA from IDCARE, where he built Australia and New Zealand’s leading response service for victims of identity crime and scams. He has also held senior executive roles across government and industry in cyber and identity security, law enforcement, and national security.

“External dispute resolution will play an important role within the Scams Prevention Framework. I’m excited to build a scams ombudsman service that will consider all the parties involved in a scam and help deliver fair outcomes for consumers and firms,” David Lacey said.

The Chief Scams Officer appointment is one of several recent C-suite additions at AFCA, strengthening the organisation’s leadership team to meet future demands and the needs of the community.

“We are bringing together scams expertise with customer-focused technology and systems so AFCA is ready for its next phase of growth and can deliver the best possible service,” said Chief Ombudsman David Locke.

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AFCA Chief Executive Officer and Chief Ombudsman David Locke said the new appointments ensure AFCA has the right expertise in place to prepare for the future and meet the needs of the community.

“The demand for our service is as strong as ever and cases are becoming increasingly complex, but at the very core, we are helping people dealing with a financial issue and we know that can be very stressful for people,” said the Chief Ombudsman.

“We are strengthening our expertise so we can streamline our processes, make our service easier to use, and manage the sustained high volume of complaints we continue to receive.”

AFCA has grown considerably since it was established in 2018, and for the past two years has received over 100,000 complaints from consumers and small businesses each year. That figure is on track to reach over 110,000 complaints this financial year.

AFCA’s new Chief Customer Officer Deborah Jenkins brings significant senior leadership experience across major regulators, the public service and global professional services, where she has led large, customer-facing teams working in complex environments.

“I’m motivated by AFCA’s industry-wide impact and its use of data to strengthen consumer protection, deliver insights and deliver better outcomes. With such significant public trust responsibilities, AFCA plays a vital role in the community. I look forward to using my experience to make sure people who come to us are supported, treated fairly, and are heard,” said Deborah.

Stevie-Ann Dovico joins AFCA as Chief Technology Officer with almost 20 years of senior technology leadership across major banks and a large mutual. Her experience spans digital modernisation, data-led operations, cyber security, enterprise architecture, and cloud transformation within highly regulated environments.

“I’m excited to bring my experience in technology to an organisation that makes a genuine impact on people’s lives. AFCA’s work is grounded in purpose, and there is real opportunity to use technology to strengthen its services, improve accessibility and deliver better outcomes for the people who rely on us. This is a chance to make a meaningful contribution,” said Stevie-Ann.

Brigid Parsonson has been acting in the Chief Operating Officer role since early 2025 and was appointed following a comprehensive search process. Since joining AFCA in 2019, she has played a key role in shaping the organisation’s growth and leading major enterprise initiatives including the evolution of AFCA’s funding model and the modernisation of core systems.

“As our jurisdiction expands, my focus remains on strengthening our operations and supporting our people so we can continue delivering fair, timely and high-quality outcomes. AFCA plays a vital role in the community, and I look forward to continuing to build on the strong foundations already in place as we move into our next phase of growth,” said Brigid.

The Scams Prevention Framework will introduce a new line of business for AFCA, requiring new capabilities, systems and cross-sector coordination. An announcement about AFCA’s inaugural Chief Scams Officer (CSO) will follow in the coming weeks.“Our new leaders bring perspective, deep experience and a strong commitment to public purpose – exactly what AFCA needs as we enter our next phase of growth and continue delivering for the community,” said the Chief Ombudsman.

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David Locke

The Australian Financial Complaints Authority (AFCA) received a record number of complaints in 2025, with 111,373 complaints coming through the door – a 14 per cent increase from the 2024 calendar year.

Consumers and small business owners secured $643 million in compensation and refunds after coming to AFCA, which is another record and a 120 per cent increase from the previous calendar year.

The increase in complaints was spread across all financial products, including banking and finance, insurance, investments and advice, and superannuation.

Large scale collapses in the financial advice sector resulted in a 58 per cent increase in investment and advice complaints, including a 59 per cent increase in complaints from self-managed superannuation funds. This includes 2,162 complaints relating to the collapse of the Shield and First Guardian Master Funds.

“Shield and First Guardian complaints will continue to be a key focus for AFCA throughout 2026. We have now issued 44 decisions, including five lead decisions, and have 500 simultaneous investigations underway, and we remain firmly committed to progressing these matters as quickly as we can,” said Chief Ombudsman and Chief Executive Officer David Locke.

Last week AFCA reached a significant milestone when it issued its 1,000 Dixon determination. Complaints against Dixon Advisory are the largest single batch of complaints AFCA has ever managed. This work continues to be a focus with around 900 matters currently under investigation.

“We know that large scale financial firm collapses can have a profound impact on people and their families. We’re working through these matters as quickly and carefully as we can, and we’re making steady progress,” David said.

The 29 per cent rise in superannuation complaints (7,687) in 2025 was largely driven by delays in handling claims and disputes over claim decisions. While complaints about death benefits have remained steady, the main pressure points were timeliness and transparency in the claims process.

Since the start of operation, AFCA has received more than 634,000 complaints, helping to secure $2.1 billion in compensation for consumers.

“This data highlights the sustained demand for our service, and with a new Banking Code now in force, and major reforms underway across general and life insurance, this is a pivotal moment for the financial services sector to lift standards and deliver more consistent, accessible and customer focused outcomes for their customers,” said the Chief Ombudsman.

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June Smith

Complaints to the Australian Financial Complaints Authority (AFCA) continue to highlight the barriers Aboriginal and Torres Strait Islander peoples face in accessing financial services and products, particularly in regional and remote communities. The ombudsman has called on the industry to make 2026 count and take actionable change to improve service quality and the cultural competence of their organisations.

AFCA received 2,461 complaints from Aboriginal and Torres Strait Islander peoples in the 2024–25 financial year. Through complaints handling and community engagement, the most common issues raised include unauthorised transactions, inadequate or delayed responses to requests for financial difficulty assistance, lengthy delays in firm responses to claims and complaints, and mis‑selling of funeral and other insurance products.

AFCA also hears concerns relating to digital exclusion, which can limit people’s ability to engage with firms via technology. This is compounded by a lack of cultural understanding within firms and higher costs for First Nations people seeking to access basic banking, superannuation and insurance services, particularly in regional and remote areas.

“First Nations people continue to face disproportionate challenges and barriers when interacting with financial services and our data likely reflects only a fraction of the problem. Year after year the same patterns persist, and many people never reach external dispute resolution because of the frustration they experience dealing with firms. First Nations people deserve to be able to access every day financial services other Australians take for granted,” said AFCA Deputy Chief Ombudsman Dr June Smith.

“In 2026, we encourage the sector to come together and take advantage of the many opportunities for change, such as the independent reviews of codes of practice which could make a real difference to how First Nations people can engage and access financial services. Our goal should be economic and financial empowerment for First Nations people.”

Many regional and remote communities face limited internet access, unreliable mobile coverage, and more recently, bank branch closures. These barriers often make it harder for First Nations people to access services online and engage with representatives about the challenges and difficulties they’re having with products.

Automated services provided by financial firms, including during internal dispute resolution, can overlook signs of digital exclusion, language and cultural barriers, vulnerability, hardship or financial abuse. Firms have an obligation to make sure there are human-led checks, culturally competent staff when engaging with First Nations people and balances in place to support their customers.

“Not having digital access can have many impacts – from making insurance claims, accessing and engaging with superannuation accounts and receiving timely updates from financial firms. A priority for AFCA is equity of access for everyone, and I encourage all financial firms to think about the equity of access they offer to their own customers.”

The current independent reviews of industry codes of practices across the sector are a terrific opportunity to set consistent standards for First Nations engagement and access to services, customer service and support for vulnerable, regional and remote customers. It is also timely for industry to review the additional barriers to full financial services engagement by First Nations people.

“Now is the time for industry to clearly define its commitment to improving engagement with First Nations peoples. The new Codes should strengthen self‑identification processes, incorporate cultural practice and norms into account and personal identification requirement, require meaningful cultural awareness training, and ensure genuine service support for First Nations people in regional and remote areas,” said Dr Smith.

“We need stronger codes of practice to improve how financial services engage with First people to ensure they can access their services and have a clear path to culturally appropriate dispute resolution when things go wrong.”

As part of its commitment to reconciliation and financial inclusion, AFCA has also changed the way it manages complaints from First Nations peoples, making its process culturally informed, respectful and accessible.

“Through our Equity of Access program and Reconciliation Plans, AFCA is embarking on further improvements to how we work, to ensure every First Nations person has the same opportunity for a fair process and a fair outcome. We recognise that people come to us with different needs and experiences, and for some the process can feel daunting,” Dr Smith said.

“This program marks the beginning of a major shift in how we deliver our service, so people feel seen, heard, supported and able to participate fully in their complaint.”

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Mr Sean Hughes is currently General Counsel for Vanguard Investments Australia and brings deep expertise in financial services regulation, law, corporate governance and risk oversight.

Mr Hughes served as a Commissioner at ASIC from 2018 to 2023, where he played a key role in implementing the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

During his time at ASIC, he also led regulatory oversight of a number of sectors, including banking, credit and payment systems, and ASIC’s response to COVID-related hardship measures for bank customers.

Prior to ASIC, Mr Hughes held senior leadership roles including Group General Counsel at Tabcorp, Chief Risk and Legal Officer at UniSuper, and Chief Executive Officer of New Zealand’s Financial Markets Authority.

As Chair, Mr Hughes will oversee the Committee’s monitoring of Code compliance, commencing a three-year term in early 2026, taking over from outgoing Chair Mr Ian Govey AM.

“Sean brings extensive experience to this role and will be a huge asset to the committee as it continues its work promoting compliance with the code, and by doing so, creating fairer outcomes for consumers,” said AFCA Chief Ombudsman and Chief Executive Officer David Locke.

“I would like to thank outgoing Chair Ian Govey AM for his service and guidance over the past six years. Ian has made a significant contribution strengthening the committee’s oversight of the code and improving outcomes for consumers,” said Mr Locke.

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