Australian Financial Complaints Authority (AFCA) Claims
We can guide you through the process and make sure you get the best possible outcome.
What you need to know about making an AFCA Claim
Do I have an AFCA Claim?
The first step to recovering your money is to establish whether or not you have a claim. This in itself can be quite a difficult task.
If your financial adviser made an inappropriate recommendation and you lost money because of this, you may have a claim. If you’re not sure if you have a claim, contact Financial Rescue, and we’ll be able to help you find out.
It doesn’t cost you anything to find out if you have a claim.
Can I make a claim myself?
Using Financial Rescue to lodge a complaint is not essential.
If you have the right knowledge and confidence, and are prepared to take the time, you can manage a complaint yourself.
AFCA is free for consumers and you don’t need Financial Rescue or anyone else to represent you.
Why use Financial Rescue?
If you don’t feel confident handling your own complaint, or would prefer to have someone less emotionally invested oversee your dispute, Financial Rescue is for you.
Financial Rescue offers a simple, streamlined alternative to lodging and managing a complaint yourself.
We’ll handle your dispute from start to finish. We fill the knowledge gap with the skills and know-how needed to effectively resolve your dispute.
Time Limits
There is a limited amount of time to submit a complaint to AFCA. Complainants have 6 years after they discover they have been poorly advised to make a complaint.
Additionally the AFCA process can be quite involved requiring submission of the complaint and then compilation and submission of evidence to back up the complaint. From start to finish it is possible for the process to take up to 3 years.
How long will my AFCA Claim take?
The AFCA process is not a quick one. It may take up to 3 years for the process to be completed.
Once a complaint is submitted to AFCA in the process of their analysis they will request evidence to back up and prove your complaint. Compilation of this evidence can be slow and should begin as soon as possible.
Important information about a complaint
All financial services licensees must join AFCA.
If your advice that caused loss was given by an unlicensed adviser then their lack of license will mean a lack of membership with AFCA and mean an AFCA complaint cannot be filed against them.
AFCA is not the only solution to a complaint, it is possible to take your former adviser to court. In this instance Financial Rescue cannot help you as we are not solicitors.
If your complaint has a loss of over $1.1 million then it is possible a legal case may be more suited to your complaint as AFCA have a maximum determination amount of $550,000.
Making a claim with AFCA
“We find that our clients are already stressed about the loss of their funds. The addition of loss calculations and the burden of compiling information for the complaint process can prove overwhelming. Many people are frantically working to recoup their loss through their job and do not have the time or energy to focus on producing a detailed complaint as well. We can help. ”
How do I make a claim?
Once we’ve established that you have a claim, we will need to work out how much money you have lost and put together a solid argument on why we believe your financial planner should compensate you.
If this is done in conjunction with the team here at Financial Rescue we can calculate the exact figures lost due to the advice you received. Then we compile the information and all of the details for maximum likelihood of resolution through AFCA.
Steps to making a claim
Initially a complaint is filed with the licensee that gave the advice. The licensee then has 45 days to provide a response. If the response is not satisfactory then the complaint can be lodged with AFCA. AFCA provide free dispute resolution for consumers. There are no fees or costs to use AFCA, however it can be a difficult and stressful process.
Financial Rescue can manage a dispute through to a final outcome with AFCA. This may include conciliation, recommendation, or determination depending on the specific dispute and the parties involved.
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The evidence presented to AFCA must be as comprehensive as possible and document as many client experiences with the licensee as possible.
The evidence must determine if there has been a breach of law, and if the breach of law caused a loss. From there the evidence is used to calculate the loss.
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AFCA often provides the opportunity for a conciliation meeting where you may be able to reach an agreement with the financial adviser for compensation.
We know this can be daunting and we represent you in these meetings to negotiate the best outcome and keep you out of the firing line.
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After your claim has been verified by an AFCA Analyst then they recommend, the actions they believe should be taken.
The recommendation has to be agreed upon by the licensee and you to be accepted.
If the recommendation is not accepted by both parties then AFCA will issue a Determination as the next step in the process.
AFCA has a payout limit of $550,000.
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If the recommendation is not agreed on by both parties, then the complaint is forwarded to an AFCA Ombudsman.
They produce a determination which is a binding, legal obligation for the licensee, and the final step of the process.
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If your licensee is required to pay by the determination and has declared bankruptcy or has gone into receivership and cannot pay, your complaint is then able to proceed to the Compensation Scheme of Last Resort (CSLR).
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The CSLR is designed to ensure that you receive compensation where you have received a determination in your favour and the financial adviser has gone out of business.
It is available to clients with an AFCA determination whose adviser cannot pay.
The CSLR has a maximum payment limit of $150,000.
Please be aware that not all complaints are legitimate claims - A loss doesn't necessarily mean bad advice, Financial Rescue does not guarantee your claim will be successful.