Thank you for taking the time to provide feedback on our consultation webpage. This consultation is now closed. We greatly value your input and want to assure you that we take all feedback seriously. As part of our commitment to improving our services, we have established an 8-week window during which we will consider and incorporate any necessary amendments to non-financial loss claims based on the feedback received.
During this period, we will carefully review all feedback and evaluate how it can be used to improve the quality of our services. We will also work diligently to ensure that any necessary changes are made in a timely and efficient manner.
We want to encourage you to continue providing feedback as it is essential to our ongoing efforts to improve our services. Thank you again for taking the time to share your thoughts with us.
About AFCA’s approach to claims for non-financial loss
AFCA’s Approach to claims for non-financial loss is not new. It sets out AFCA’s approach to assessing these claims by outlining:
- the circumstances in which a claim for non-financial loss can arise
- AFCA’s expectations of a complainant in dealing with a problem
- limits on awards of compensation
- principles applied in awarding compensation.
AFCA’s current Approach to claims for non-financial loss includes case studies, analysis and examples of compensation that was awarded in particular circumstances.
However, the current Approach does not include an objective scale to help parties understand how AFCA might determine the appropriate amount of non-financial loss to be awarded.
To clarify this and improve transparency, AFCA is proposing to add a matrix as a guide on what might be an appropriate range for an award of compensation for non-financial loss.
The matrix explains how much compensation AFCA might choose to award based on the impact of the firm’s conduct on the complainant, and duration of that impact.
AFCA has also updated its case studies and reviewed the Approach to clarify its jurisdiction and ensure consistency of language.
AFCA's current Approach to non-financial loss claims (last updated October 2022)
AFCA's proposed amended Approach to non-financial loss claims (March 2023)
About the consultation
Consultation on AFCA’s Approach to claims for non-financial loss is taking place from 3 April to 1 May 2023.
Although the proposed changes to the Approach are not substantial, AFCA wishes to consult with external stakeholders to ensure there are no unintended consequences as a result of the changes.
AFCA’s consultation process has been designed to be flexible and accessible. This means, stakeholders can provide feedback, comments and questions in meetings with AFCA people, in writing (via email and via post), or via a formal submission.
Making a submission
To share your feedback, comments, questions or submission, you can:
- Email: email@example.com
If you have a formal submission document, please attach this to your email.
- Write to:
Senior Consultant – Approach Frameworks
Australian Financial Complaints Authority
GPO Box 3
Melbourne VIC 3001
To contact us about AFCA’s Approach to claims for non-financial loss or if you have questions about the consultation, please email firstname.lastname@example.org.
Frequently Asked Questions
What is an AFCA Approach document?
AFCA’s Approach documents help consumers and financial firms better understand how we reach decisions about key issues. These documents explain the way AFCA might approach some common issues and complaint types.
What is compensation for non-financial loss?
Compensation for non-financial loss is compensation for significant distress, delay and inconvenience. AFCA can require a financial firm to compensate a complainant for non-financial loss caused by the firm’s conduct.
How much can AFCA award for non-financial loss?
The maximum amount AFCA can award is $5,400 per claim.
Who sets the maximum amount AFCA can award for non-financial loss claims?
AFCA does not set the maximum amount it can award for claims for non-financial loss. Any increase to the amount AFCA can award needs approval from the Australian Securities and Investments Commission (ASIC).
Is AFCA going to amend how much it can award for non-financial loss?
No. AFCA does not set its compensation limits