In April 2022, AFCA introduced a merits assessment to its Case Management stage that identifies unmeritorious complaints before they progress to a Preliminary View or Decision – making the handling of these types of complaints faster, cheaper, and fairer for all parties. 

The process enables AFCA to assess complaints without merit and use its discretion under Rule A.8.3 to decline to consider the complaint during Case Management. 

Since making this assessment a permanent feature of our complaints process after a successful pilot program, AFCA has received good feedback from members. 

Since upskilling our people, we have also seen an increase in its appropriate use. In the period 1 October 2021 to 30 September 2022, AFCA closed more than 1,200 complaints under this new process. A majority of cases were banking and finance complaints, followed superannuation and general insurance disputes.  

AFCA recently completed a quality review of the Case Management merits assessment to further refine and improve the process. We will continue to source and consider feedback from both members and complainants and look forward to sharing updates in the future. 

About AFCA Rule A.8.3 

Under Rule A.8.3, AFCA can cease consideration of a complaint in circumstances where:   

• The complaint is without merit   
• The complainant has suffered no loss (or has been appropriately compensated for such loss and AFCA would not award any further amount) 
• The financial firm has committed no error.     

This means in circumstances where a complaint may be within jurisdiction and has proceeded to Case Management, an AFCA case worker will consider the nature of the complaint and supporting information to decide if it is appropriate to consider the complaint further.  

The assessment is generally more appropriate in cases where the information about a complaint is provided early and clearly shows there is no error and/or loss. Complaints that raise more complex issues with significant documentation, where an investigation is required to reach a view on what has most likely occurred, are less suitable for this assessment. 

The delivery of a fair process is a key element in ensuring that we meet our obligations under the AFCA Rules. If we decide not to consider a complaint, AFCA gives complainants, financial firms, and representatives an opportunity to respond to our assessment.