When a complaint is lodged with AFCA, the complaint is referred to the financial firm and they are given a set time to respond. The timeframe varies based on whether the complaint has previously been through the financial firm’s internal dispute resolution process.

• If a complaint has previously been through the financial firm’s IDR process, the firm is given 21 days to respond. This timeframe is not impacted by RG 271.
• If the complaint has not previously been through the IDR, different timeframes are given depending on the product or issue complained about. These timeframes have changed as a result of RG 271.
• If a complaint is part-way-through an IDR process when lodged with AFCA, AFCA will provide the balance of the remaining applicable IDR timeframe.

IDR response timeframes applied at referral (when the complaint has not previously been through IDR)

Transitional arrangements

The new maximum IDR timeframes outlined in RG 271 will apply to all complaints received by a financial firm on or after Tuesday 5 October 2021.

The timeframes outlined above will also be applied to all complaints lodged at AFCA on or after Tuesday 5 October 2021.

RG 165 timeframes

The maximum IDR timeframes outlined in RG 165 will continue to apply to all complaints received by a financial firm prior to Tuesday 5 October 2021.

If a financial firm receives a complaint referred from AFCA on or after Tuesday 5 October 2021, which was first received by the firm prior to 5 October 2021, the financial firm should contact AFCA to ensure the RG 165 timeframe is applied. 

Frequently asked questions

Why are there different timeframes for complaints based on whether they have completed IDR?

If a complaint is lodged with AFCA, but it has not previously been raised with the financial firm or the firm has not been given time to respond, AFCA refers the complaint to the firm with maximum IDR timeframes set out in RG 271 (or balance thereof) or a shorter timeframe if set out in an applicable industry code. This timeframe varies depending on the type of complaint (e.g. financial hardship, superannuation, other)

If a complaint is lodged with AFCA and it has been through the financial firm’s IDR process, we will usually provide the financial firm with a 21 day refer-back period. We do this because we find that many complaints resolve through this process, which can have the additional benefit of preserving the relationship between the financial firm and the customer. To maximise the effectiveness of the refer-back period, we encourage financial firms to review a complaint with fresh eyes when we refer it to them.

What happens if a financial firm fails to respond by the due date?

If a financial firm fails to respond during the IDR refer-back period, the complaint will progress to AFCA’s case management stage.

Under ASIC RG 267.74, AFCA is required to report quarterly to ASIC, including providing information on “firms’ performance in resolving complaints at the refer back stage”. From 5 October 2021, AFCA will begin reporting to ASIC on IDR extension requests.

AFCA will also develop ways to report on the process in future Annual Review and AFCA Datacube releases.

If a firm is not already aware of a complaint does the timeframe start when AFCA receives the complaint, or when the complaint is referred to the firm?

In circumstances where the complainant has confirmed that they have not yet notified the financial firm of their complaint, the refer back period will commence from the time that AFCA notifies a financial firm of a complaint through our initial refer-back correspondence