Sharp Drop in Derivatives and Forex Complaints- AFCA

In the latest data by AFCA, it has been revealed that there has been a substantial decline in forex complaints. This is against derivatives and foreign exchange dealers in the last fiscal year ending on June 30, 2023. However, this positive trend is juxtaposed against a significant increase in the overall number of complaints received by AFCA.

AFCA reported a total of 197 complaints against derivatives dealers operating in Australia. This represents a noteworthy drop from the 418 complaints received in the previous fiscal period. Similarly, complaints against forex dealers plummeted from 622 to 93, marking a substantial decrease. This sharp decline can be attributed to the 543 complaints filed against Union Standard International Group in FY22.

Among derivatives dealers, the Australian branch of FTX, currently under administration, had the highest number of complaints in FY23, totaling 65. It was followed by IC Markets with 32 complaints and a subsidiary of IG with 16 complaints. The Australian divisions of CMC Markets and Plus500 each received 14 complaints. FTX notably did not address any of the complaints lodged against it, while most other prominent derivatives dealers with double-digit grievances managed to resolve some issues, though in single digits.

Forex Complaints in Australia, AFCA

On the forex dealer front, OzForex received the highest number of complaints at 30, while two subsidiaries of HIFX received 20 and 10 complaints, respectively. The Aussie subsidiary of Vantage received nine complaints, none of which have been resolved. AFCA Datacube only adds companies that received at least four complaints in the financial year. Despite an overall resolution rate of 52% for all sectors, the figure dropped to 19% for derivative dealers and 39% for forex dealers.

AFCA explained, “The amount of time that the financial firm has to respond depends on the type of complaint and what’s happened previously, including whether the financial firm has had an opportunity to complete its internal dispute resolution process.”

The decline in complaints against derivatives and forex dealers is a promising development. The overall increase in complaints suggests that the financial sector in Australia still faces challenges. They still need to ensure customer satisfaction and resolve issues in a timely manner.

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