The Australian Financial Complaints Authority (AFCA) on Friday revealed that it paused the complaints of 44 financial firms as they entered into insolvency. Out of them, there are two insolvent firms that were foreign exchange dealers. “The complaints have had to be paused because of the firms’ insolvency,” AFCA stated. This updated figure was until June 1, 2022, when the agency was handling a total of 2,447 open complaints. The total claim of customers in these insolvent financial firms is estimated to be almost AU$376.5 million. The two forex dealers, against which the agency received the maximum number of complaints, also accounted for the maximum claim at more than AU$266.8 million. The agency further revealed that it received 1,162 complaints against the two forex dealers followed by 525 against four funeral insurance providers and 272 against six managed investment scheme providers. Other business types against which the AFCA received complaints and now under the insolvency proceedings are financial advisors, derivatives dealers, corporate advisors, and securities dealers. “Claim amounts and outcome amounts are estimates only and may be subject to change for a number of reasons, including further validation,” the agency added. FX Complaints on the Top The AFCA is an Aussie body that provides an external dispute resolution scheme for the financial service providers in the country. It was established in late 2018, replacing three other dispute resolution agencies, and operates as a non-profit. Though the AFCA did not reveal the names of the insolvent companies, it was already handling a few high-profile cases. It continued to take complaints of customer claims of no-collapsed ForexCT until mid-2021, a broker that faced a hefty fine of AU$20 million. Meanwhile, complaints against forex brokers mostly remind on the top. Over the years, it has received complaints even against some of the big industry names like Plus500, CMC Markets and IG Group.
This article was written by Arnab Shome at www.financemagnates.com.
