Investor complaints surge 56% in financial year

The Australian Financial Complaints Authority (AFCA) has released its outcomes for the 2025/26 financial year, with investments and advice-related complaints reported the biggest jump.

The authority handled 119,949 complaints in FY26, its highest annual total on record and the third consecutive year with more than 100,000 complaints. While banking and finance made up more than half (56%) of the complaints for this period – racking up 66,971 – investments and advice saw the biggest jump in FY26, increasing 56% to 6,542.

Collapses drive record complaints

The increase was largely attributed to the Shield Master Fund and First Guardian collapses as complaints alleging failure to act in the client’s best interest jumped 65% to 2,081 to account for almost a third (31.8%) of all investments and advice-related complaints, making it the top driver for the sector in FY26.

AFCA chief customer officer Deborah Jenkins said: “While most financial advice firms do the right thing, we are seeing a significant number of complaints stem from major financial collapses that have affected thousands of consumers. These matters are complex and can be incredibly stressful for individuals and their families.”

This is evident on the AFCA Datacube which shows that 1,395 complaints were filed against InterPrac Financial Planning in FY26, making it the biggest recipient of complaints within the advice industry.

The runner up was significantly behind with Financial Services Group Australia receiving 469, followed by Uniter Global Capital at 365, MWL Financial Services with 252 and Next Generation Advice at 73. Of the top five firms, InterPrac is the only one not in liquidation.

Superannuation disputes also climb

Meanwhile, superannuation complaints also saw a significant jump with 8,755 reported for an increase of 42% compared with the previous financial year. Delays in claim handling, service issues and rejection of super insurance claims were the most common issues raised, the latter of which saw an 82% increase from FY25.

This marks the third consecutive year AFCA has processed over 100,000 complaints.