The Australian Financial Complaints Authority (AFCA) has reported a record 119,949 complaints for the 2025–26 financial year, the highest number on record and the third consecutive year complaint volumes have exceeded 100,000.
Banking and finance remained the largest complaint category, with 66,971 complaints, up 23% on the previous year. Investments and advice saw the sharpest rise, up 56% to 6,542, largely tied to the Shield Master Fund and First Guardian collapses, while superannuation disputes climbed 42%.
Finance Brokers Association of Australia (FBAA) chief executive Leo Gagic (pictured) said the broking sector had continued to demonstrate strong standards even as complaint volumes rose more broadly across the financial system.
"While complaint volumes continue to increase across banking, insurance, superannuation, and investments, the majority of finance brokers continue to demonstrate the high standards of professionalism, care and transparency that clients expect," Gagic said.
For Gagic, the data underscores why the fundamentals of good broking practice matter more than ever.
"Adequate due diligence, robust compliance practices, and clear communication are not just regulatory obligations, they are the foundation of trust," he said.
Gagic argued that when clients feel informed, understood, and supported throughout the lending journey, the likelihood of disputes falls significantly.
"The result is stronger client relationships, greater transparency, and better outcomes for everyone involved," he said.
Gagic pointed to AFCA's own finding that many complaints stem from communication, service quality, and process-related issues rather than the underlying financial outcome.
He said this pattern reinforces the value of getting the basics right. Understanding a client's objectives, financial circumstances, and individual requirements before providing guidance remains, in his view, among the strongest safeguards against disputes escalating.
Gagic said the broader trend across financial services makes it more important that brokers keep raising standards rather than treating compliance as a box-ticking exercise.
"Congratulations to our community, the many brokers who continue to raise the bar for professionalism and client advocacy every day," he said.
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