In the financial year 2023–24, 4.7 million complaints were reported by financial firms of all types under the internal dispute resolution (IDR) data reporting framework.
Of that, financial firms reported 220,860 complaints relating to superannuation, with ASIC confirming that over $15 million in total monetary remedy was provided.
The top three products for superannuation complaints were superannuation accounts (161,513), pension (25,112), and death benefit products (10,960). Other features within a superannuation fund attracted 9,345 complaints, while total and permanent disability garnered 8,682 complaints.
Moreover, ASIC revealed the top three issues for superannuation complaints were service-related issues (26 per cent), delay in following instructions (12 per cent), and technical problems (10 per cent).
Under new data reporting requirements, most licensed financial firms are required to report IDR data to ASIC on a six-monthly basis.
According to ASIC, this inaugural industry-wide report is a key milestone in the implementation of the framework.
ASIC commissioner Alan Kirkland said it is important for firms to foster a positive complaints management culture, including a focus on gathering accurate data, adding that firms should reflect on the detailed requirements and practical guidance outlined in ASIC’s IDR data reporting handbook.
“The gaps we’ve identified suggest there may be inconsistent IDR reporting practices across the industry,” said Kirkland.
“While there may be reasonable explanations for some of these variances, we encourage firms to carefully review our report and guidance to assist in reporting complete and accurate IDR data. Starting from next year, we’ll be publishing data about complaints received by individual firms. It is crucial that firms act now to address any gaps in IDR reporting processes, because we will publish the data as it is reported to us.”
Elsewhere in financial services, there were 72,238 complaints relating to investments and advice, in relation to which $13 million in total monetary remedy was made.
The top three products for investments and advice complaints were shares (52 per cent), investor-directed portfolio services (11 per cent), and other managed investments (7 per cent).
Personal advice rounded out the top five products for investments and advice, in fifth place with 3,288 complaints.
General insurance products were subject to the most complaints (33 per cent of all complaints) in FY23–24, followed by credit products (22 per cent) and deposit-taking products (15 per cent).
While overall, 623,555 complaints resulted in a monetary remedy, collectively totalling over $375 million, most outcomes involved an “explanation or apology only”.
Kirkland said ASIC is closely examining the standard of IDR reporting and undertaking a range of activities to strengthen compliance with the regime.
“Where we become aware of problems, we will engage with firms to understand the causes, and whether they stem from deficiencies in the firm’s underlying IDR processes or in IDR data reporting,” he said.
“Our ongoing analysis of the IDR data will also inform our other regulatory activities, so industry can expect to hear more from ASIC on this issue.”
Ahead of publishing firm-level data, ASIC said it will consult on its approach to contextualising and presenting the data.
