Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697641020186.pdf (Australia)
3 February 2022 Email: economics.sen@aph.gov.au Committee Members Senate Standing Committees on Economics PO Box 6100 Parliament House Canberra ACT 2600 Dear Senators COMPENSATION SCHEME OF LAST RESORT: FINANCIAL SERVICES COMPENSATION SCHEME OF LAST RESORT LEVY BILL 2021 AND THE FINANCIAL SERVICES COMPENSATION SCHEME OF LAST RESORT LEVY (COLLECTION) BILL 2021 – ANSWERS TO QUESTIONS ON NOTICE We refer to our appearance before the Committee on 27 January 2022 and provide the following complaints data from the Australian Financial Compensation Authority in answer to the question on notice: Quantum of complaints against stockbrokers for the financial year 2020/2021 Compensation awarded stockbroking: • $3,625,785 was awarded (i.e.
total outcome amount) on the 537 stockbroker complaints which closed in FY 20-21 Amounts claimed: • $11,256,655,268 was claimed (i.e.
total claim amount) on these same 537 complaints • $11,252,365,071 was claimed on the 490 stockbroker complaints received in FY 20-21 AFCA notes that the two very large claim amount figures were inflated by just two complaints where the complainant had claimed $5,555,555,555 (determined in favour of the Financial Firm) and $5,670,000,000 (discontinued at Registration), respectively.
If we were to remove these two complaints, the amounts claimed would be: • $31,099,713 was claimed on 535 stockbroker complaints closed in FY 20-21 • $26,809,516 was claimed on 488 stockbroker complaints received in FY 20-21 Compensation awarded in advice and stockbroking: • $24,500,156 was awarded in advice and broking in total on complaints closed in FY 20-21.

• Stockbroker disputes represented 14.8% of total advice and stockbroking claims paid ($3,625,785 of the total — see above).
Stockbrokers and Financial Advisers Association ABN 91 089 767 706 Level 5, 56 Pitt Street, Sydney NSW 2000 (tel) +61 2 8080 3200 (fax) +61 2 8080 3299 www.stockbrokers.org.au AFCA does not currently measure or capture information about whether the claims are from wholesale or retail clients.

If you require additional information please do not hesitate to contact SAFAA’s policy manager, Michelle Huckel, at michelle.huckel@stockbrokers.org.au.

Kind regards Judith Fox Chief Executive Officer 2