Background
The Australian Financial Complaints Authority (AFCA) has released updated guidance on handling complaints involving family violence and financial abuse of older people. These revised approaches aim to improve clarity, consistency, and sensitivity in resolving disputes.
AFCA’s new Approaches have replaced their existing Approach to joint accounts and family violence and also supersede their Approach to financial elder abuse.
AFCA recognises the significant barriers faced by victim-survivors and older individuals in escalating complaints. These issues commonly arise in banking, finance, and insurance but extend to superannuation, investments and small businesses.
Consultation Process
A public consultation ran from 17 March to 4 April 2025, attracting 30 submissions from industry bodies, consumer groups, legal centres, and individuals. Feedback focused on enhancing clarity, expanding scope, and incorporating contemporary examples. AFCA also conducted further engagement in August and September before finalising the documents.
Key Updates in the Financial Approaches
1. Expand Principles:
- Safety and diverse lived experiences of victim-survivors are prioritised.
- Updates to align with legal obligations, regulatory guidance, and industry codes.
- Emphasis on trauma-informed and culturally sensitive responses.
2. Broader Scope Across Products:
- Guidance applies to all financial products, not just joint accounts.
- Includes insurance, superannuation, and investments.
- Sector-specific sections outline common issues and warning signs.
3. Contemporary Case Studies:
- New examples include scenarios involving digital platforms, online harms, and barriers older people face with online-only products.
- Balanced representation across product areas.
4. Warning Signs:
- Warning signs now split into:
- General indicators applicable across products
- Product-specific indicators for banking, insurance, superannuation, and small business
- Firms directed to industry guidance for deeper detail.
5. Diversity and Inclusion:
- Explicit recognition of unique experiences among:
- First Nations people, culturally and linguistically diverse communities, LGBTQIA+, people with disabilities.
- Terminology change:
- From “elder abuse” to “financial abuse of older people”, aligning with the National Plan to End the Abuse and Mistreatment of Older People.
- Definition of “older person” updated to include First Nations people aged 50+.
- References added to resources such as ICAN Learn’s report on First Nations financial abuse.
6. Privacy and Safety:
- Safety elevated as a core principle in communications, documentation, and training.
- Firms encouraged to:
- Limit evidence requests for family violence disclosures.
- Inform victim-survivors of privacy breaches.
- Follow victim-survivor’s lead on disputed account arrangements.
- Clarification on privacy obligations when escalating concerns to safeguarding bodies.
7. Operational Practical Issues:
- AFCA acknowledges feedback on:
- Need for trauma-informed training.
- Clear escalation points for vulnerable complaints.
- While outside the scope of the Approaches, AFCA flagged these for internal review.
8. Role of Financial Firms:
- Firms expected to:
- Ensure third-party providers (e.g., debt collectors, brokers) understand key principles.
- Intervene where representatives act against customer interests.
- Updated references to industry guidelines and ASIC’s RG 271.
9. Financial Difficulty:
- Expanded guidance on:
- Hardship assistance– flexible, case-by-case responses.
- Credit reporting– options to protect victim-survivors’ financial recovery.
- Reinforced good practice: debts should not be sold where settlement is agreed with one borrower on a joint loan.
10. Online Harms:
- Recognition of risks from:
- Frictionless digital applications that can be weaponised.
- Barriers older people face with online platforms.
- Firms encouraged to review product design and complaint process to mitigate digital harms.
Implementation
AFCA confirmed no transition period is required as updates reflect existing obligations. However, firms are encouraged to review training and processes to align with best practice and evolving industry standards.
Conclusion
The revised Approaches strengthen protections for vulnerable consumers and promote fair, trauma-informed complaint handling. AFCA will continue to monitor legal and industry developments to ensure guidance remains current and effective.
AFCA (2025). Joint Consultation Feedback Report. ‘The AFCA Approach to Family Violence. The AFCA Approach to Financial Abuse of Older People’. https://www.afca.org.au/news/consultation/joint-consultation-on-approaches-to-family-violence-and-financial-abuse-of-older-people