AFCA stands by the use of its “But for” methodology to calculate compensation payments, despite the FAAA’s protestations. Clients will get paid what they lost, plus what they would have earned if the advice wasn’t inadequate. Just don’t call it payment for theoretical loss, or opportunity cost.
The amount of complaints against advisers that reach AFCA has plummeted in the authority’s five years of operation, and it’s not just falling adviser numbers that are contributing to the improvement in consumer satisfaction.
The number of cases being escalated to the complaints authority is soaring, but as we approach the 5-year anniversary of the Hayne Royal Commission it’s clear that a whole new set of issues are driving consumer ire.
The proposal seeks to preserve this definition of what a superannuation complaint is, but “clarifies the policy intent that other types of superannuation-related complaints may also be under the AFCA scheme”.
Ombudsman the most likely source of remediation for aggrieved clients.
