The Australian Financial Complaints Authority (AFCA) has confirmed updates to its Rules following a public consultation held between May and June 2025. These changes, approved by ASIC on 23 October 2025, will come into effect on 12 March 2026. The revisions aim to strengthen AFCA’s jurisdiction, improve complaint-handling efficiency and enhance transparency across the financial services sector.
Consultation Overview
AFCA engaged stakeholders through a consultation paper, webinars and roundtables, receiving 39 submissions from industry bodies, financial firms, consumer groups, paid representatives and individuals. Feedback from these stakeholders played a critical role in the final drafting of the Rules.
Summary of Changes
1. Complaints about Banks and Scams (Rule B.2.1j)
AFCA can now consider complaints involving receiving banks and mule accounts linked to scams. This change implements a government Authorisation Condition designed to strengthen AFCA’s ability to address scam-related disputes. The definition of “Bank” follows the Corporations Act, ensuring consistency with existing legislation.
2. Paid Representatives (Rules A.3.3, A.8.4(a)(iii), 9.8, B.6.5c)
New requirements mandate that Paid Representatives must use AFCA’s preferred communication channels, including its consumer portal, and be AFCA members where legally required. The measures aim to reduce delays and improve service quality for complaints and financial firms. AFCA will implement usability enhancements before enforcing this requirement.
3. Public Naming of Non-Compliant Financial Firms (Rule A.11.6)
AFCA can publicly name firms that fail to comply with its Determinations. This step enhances transparency and accountability, ensuring consumers and industry stakeholders are informed of serious breaches. Firms will be notified and given an opportunity to respond before publication.
4. Legacy Complaints (Schedule F Removal)
Provisions for Legacy Complaints, which have been inoperative since July 2020, will be removed to improve clarity and streamline AFCA’s Rules.
Next Steps
The updated Rules and accompanying Operational Guidelines will apply to complaints lodged from 12 March 2026. AFCA will continue periodic reviews to ensure its Framework remains relevant and fit for purpose. Stakeholders can access the updated Rules and detailed guidance on AFCA’s website.
References
Australian Financial Complaints Authority (2025). Consultation Response Report: Changes to AFCA’s Rules. https://www.afca.org.au/media/2262/download