The Australian Securities and Investments Commission (ASIC) has published its first industry-wide report under the Internal Dispute Resolution (IDR) data reporting framework, marking a milestone in its efforts to enhance transparency in complaint handling within the financial services sector.
Under the IDR framework, most financial firms licensed by ASIC are required to submit complaint data every six months.
The inaugural report covers disputes lodged with firms between July 1, 2023, and June 30, 2024, providing insights into how financial institutions handle customer complaints.
The report reviewed over 4.7 million complaints lodged during the year.
General insurance products received the highest share of complaints (33%), followed by credit products (22%) and deposit-taking products (15%).
Nearly half (45%) of complaints were related to service issues, while 22% concerned charges and 11% involved transactions.
Explanations or apologies were the most common resolution (43%), while 39% of complaints were resolved with service-based remedies. Monetary compensation was provided in 13% of cases.
More than three-quarters of complaints were resolved within one day.
Complaints resulting in financial compensation totalled $375 million across 623,555 cases.
ASIC raised concerns about potential inaccuracies in some firms’ reported data. The regulator found inconsistencies in the volume of complaints reported by similar firms and identified gaps in submissions that suggest some data may not fully reflect the actual number of complaints received.
Additionally, over 5,000 firms reported no complaints during the 12-month period – a figure ASIC described as unexpectedly high.
ASIC plans to assess the accuracy of these submissions by cross-referencing them with other sources, including misconduct reports, regulatory filings, and data from the Australian Financial Complaints Authority (AFCA).
ASIC Commissioner Alan Kirkland urged financial firms to ensure accurate data collection and reporting.
“The gaps we’ve identified suggest there may be inconsistent IDR reporting practices across the industry,” he said.
Kirkland also stressed that firms should act promptly to address any deficiencies in their IDR reporting practices, as ASIC plans to publish firm-specific data starting next year. The regulator will use the submitted data as reported, placing further responsibility on firms to ensure its accuracy.
ASIC intends to use the IDR data to inform regulatory activities, monitor compliance with reporting requirements, and evaluate the effectiveness of complaints handling processes.
Kirkland said that ASIC would engage directly with firms if deficiencies in their complaints management or reporting processes are identified.
“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.
He added that the industry can expect ongoing analysis and further guidance from ASIC on this issue.
The Australian Financial Complaints Authority (AFCA) supported ASIC’s initiative, saying the report provides valuable insight into the financial services complaints landscape.
AFCA Chief Ombudsman David Locke described the report as a step toward greater transparency and understanding of consumer experiences.
AFCA, which offers free external dispute resolution services, reported nearly 105,000 complaints referred to it during the same period – more than double the volume handled by its predecessor schemes six years ago.
Common complaints related to unauthorised transactions, delays in insurance claims, disputed claim amounts, service issues, and scams.
To further promote transparency, AFCA continues to publish its own complaints data through its Annual Review and the publicly accessible AFCA Datacube.
ASIC plans to consult stakeholders on how it will present and contextualise firm-level complaints data ahead of its release next year.
