AFCA
Australian Financial Complaints Authority
External dispute resolution body for financial services, credit, insurance, and superannuation complaints. Mandatory member scheme.
7
Obligations enforced
3
Enforcement actions tracked
3
Scope topics
Obligations enforced by AFCA (7)
- criticalCWLTHComply with claims handling + settling as a financial service (s 766A)
From 1 January 2022, insurance claims handling is a financial service requiring AFSL authorisation.
- criticalCWLTHConsumer Credit Hardship Notice (NCC ss 72-73)
Credit providers must respond to hardship notice + assess variation request.
- criticalCWLTHMaintain AFCA membership (mandatory external dispute resolution)
AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
- highCWLTHComply with General Insurance Code of Practice (ICA)
ICA Code binds member insurers on conduct + claims + complaints.
- highCWLTHComply with internal dispute resolution standards (RG 271)
Financial firms must acknowledge complaints within 24 hours and resolve within prescribed timeframes.
- highCWLTHManage business interruption claim definitions (post-pandemic precedent)
BI insurance policies must clearly define pandemic exclusions per Federal Court guidance.
- highCWLTHRespond to hardship notices within statutory timeframe
Credit providers must consider hardship notices within 21 days under s 72 NCC.
Recent AFCA enforcement
- determinations2024AFCA significant determinations 2024
AFCA published significant determinations through 2024 across financial advice, insurance, banking + super.
- systemic referral2024AFCA systemic issues — insurance claims 2024
AFCA referred multiple systemic issues to insurance firms + APRA / ASIC arising from 2022-23 natural disaster claims handling.
- systemic referral2024AFCA systemic-issues referrals (2023-24)
AFCA referred 300+ systemic issues to financial firms and regulators arising from complaint patterns including poor disclosure, unauthorised transactions and scam compensation.
Scope topics
Source: regulator's own website. Rules Mate links and summarises — we don't republish full statutory text.