AFCA renews CEO term as compensation hits $1 billion

David Locke has been reappointed Chief Ombudsman and CEO at the Australian Financial Complaints Authority (AFCA) for another five-year term, the board announced today.

The complaints resolution scheme says it has now allocated $1 billion in compensation and refunds to consumers since its inception in late 2018, and is on track to receive close to 100,000 complaints this year, up from 70,000 last year.

AFCA Chair John Pollaers says Mr Locke has successfully brought together three separate dispute resolution bodies to build a single “world-class scheme,” and had led AFCA during significant growth in complaints brought on by covid, natural disasters and scams.

“The board is delighted David has accepted our invitation to continue to lead this important work,” Mr Pollaers said.

“AFCA provides a vital service. Consumers, small businesses and financial firms can participate in the financial system with confidence that a robust process is in place in the event of a dispute.”

AFCA was formed in 2018, taking over from the Financial Ombudsman Service, Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.

Mr Locke, a lawyer, moved to Australia from the UK in 2011 to help establish the Australian Charities and Not-for-Profits Commission (ACNC), and was appointed AFCA’s inaugural CEO in mid 2018. He has overseen a new funding model, a significant review of AFCA’s rules and ongoing IT transformation.

“It is a great privilege to lead such an amazing group of people who are passionate about access to justice and fairness to all,” Mr Locke said, adding the aim was that financial firms resolve more disputes themselves so fewer matters have to be escalated to AFCA.

“AFCA’s services have, sadly, never been more needed. We will continue to work in partnership with financial firms, consumer bodies and regulators to share lessons from our work and drive improved practices,” he said.

AFCA has resolved more than 320,000 complaints and identified and resolved 236 systemic issues with implications beyond an individual complaint, resulting in refunds to 4.7 million consumers. The ombudsmen have worked with more than 26,000 people in financial difficulty and more than 5000 victims of about 50 weather disasters.

It handled more than 17,000 covid-related complaints, and says about 70% of all its cases have been resolved by agreement.

AFCA is receiving an average of more than 7500 complaints a month. It received around 6000 complaints a month in FY22, and just over 5800 complaints a month in FY21.

General insurance complaints are up by 64% this financial year so far.

The 2021 Independent Review of AFCA found it was “performing well” in a difficult environment.