AFCA puts InterPrac determinations on ice

The Australian Financial Complaints Authority (AFCA) is pausing all InterPrac Financial Planning-related determinations as court proceedings instigated by the latter are underway.

For people affected, the pause in determinations mean their complaints against InterPrac will be temporarily halted before they progress to final decision-making stages, including the assessment of losses and the issuance of determinations.

InterPrac is currently taking action against a former client and victim of the First Guardian Master Fund collapse for an AFCA determination it does not agree with.

This is on top of the advice group's lawsuit against AFCA filed on February 24, contesting a December 2025 determination.

InterPrac took issue with the way in which blame has been apportioned, saying AFCA "did not adequately take account of the conduct of other parties connected with the Shield Master Fund when allocating responsibility for losses arising from the fund's collapse."

AFCA said the newly announced approach is "intended to reduce unnecessary complexity and potential stress for impacted consumers, while also ensuring investigation and assessment work continues so complaints are ready to move forward efficiently once court proceedings have concluded."

Once the court proceedings have concluded and the relevant issues are resolved, AFCA will update impacted consumers on next steps.

On May 7, InterPrac added Melinda Kee, a former investor in First Guardian, as a defendant in the case related to its proceedings against AFCA, claiming the complaints body treated it unfairly.

In response, Kee said: "Victims are no longer just fighting to recover their retirement savings. We are now being forced to fight the very systems that was supposedly created to protect us."

AFCA acting chief ombudsman and chief executive June Smith commented: "We understand that investors want to have their complaints resolved as quickly as possible, and this decision has not been made lightly. AFCA is cooperating with the court process commenced by InterPrac."

Smith added that impacted investors have been contacted directly by AFCA in relation to what it means for their individual complaints.

"AFCA will continue to engage with all parties involved and the regulator. AFCA will review its position if circumstances change," she said.