We don't always vote in complainants' favour: AFCA

The Australian Financial Complaints Authority (AFCA) addressed a crowd of financial advisers at the MDS Self Licensing Summit 2026, busting the myth the ombudsman is always targeting them.

Speaking at a discussion panel at last Thursday, AFCA senior ombudsman Nicholas Battaerd said based on the latest AFCA data, approximately 65% of complaints received voted in favour of advice firms. Incidentally, the remaining 35% of cases result in a determination against the advice practice.

"Our job is to be impartial and to take each case on its merits and apply the rules," Battaerd said.

"Excluding insolvent firms for last year... we find in a financial firm's favour 65% of the time, so nearly two thirds of the time we're voting against the complaint. It represents the fact that even for cases that made their way to AFCA, two thirds of the time, the licensees are doing the right thing.

"That doesn't demonstrate any sort of bias."

Additionally, he highlighted the importance of providing additional information, including documents like file notes, in a complaint process.

Although many advisers are reluctant to share them as they are sometimes not receivable or recorded in the Statement of Advice, he said doing so can enhance the ombudsman's understanding to fast-track the process and develop an outcome that may be acceptable for all parties involved.

"Case managers will make a call, whether they think it's something that can be resolved between the parties; they're empowered to try and negotiate it down," he said, noting the more details and information provided, the easier it is for AFCA to do its job.

Often, case managers set up conciliation meetings. This process in many instances, Battaerd said, is enough for the complainant and advice firm to come to an agreement.

But if the negotiation failed to close on an agreed basis, he said, the case manager will provide a preliminary assessment to the related firm or adviser, which will trigger an intermittent termination should they reject AFCA's recommendation.