Actions lodged with the Australian Financial Complaints Authority (AFCA) rose by 14 per cent in 2025, reaching a record total of 111,373 as many investors caught up in the Shield and First Guardian master fund failures sought redress.
To this end, the government body received 2162 complaints relating to the collapse of the Shield and First Guardian offerings with an expectation this number will grow.
“Shield and First Guardian complaints will continue to be a key focus for AFCA throughout 2026. We have now issued 44 decisions, including five lead decisions, and have 500 simultaneous investigations underway, and we remain firmly committed to progressing these matters as quickly as we can,” AFCA chief ombudsman and chief executive David Locke noted.
But the complaints authority also reported consumers and small business owners were able to secure $643 million in compensation and refunds in 2025. This represented a 120 per cent increase on the previous year and another record.
Further, AFCA achieved another milestone after the number of Dixon Advisory determinations it has issued passed 1000 last week. Complaints against Dixon are the largest series of complaints AFCA has ever had to manage and another 900 matters are currently under investigation.
“We know that large-scale financial firm collapses can have a profound impact on people and their families. We’re working through these matters as quickly and carefully as we can and we’re making steady progress,” Locke indicated.
In 2025, superannuation complaints increased by 29 per cent to 7687, the majority of which concerned delays in handling claims and disputes over claim decisions. During the year, investment and advice complaints rose by 58 per cent, which included an increase in complaints involving SMSFs of 59 per cent.
“This data highlights the sustained demand for our service and with a new Banking Code now in force, and major reforms underway across general and life insurance, this is a pivotal moment for the financial services sector to lift standards and deliver more consistent, accessible and customer-focused outcomes for their customers,” Locke said.
