Based on the latest data from the Australian Financial Complaints Authority, Interprac Financial Planning remains the primary target of advice complaints in the wake of Shield and First Guardian.
As at May 31, Interprac has received 1,321 complaints over the 2026 financial year; including the additional 121 complaints from FY25 brings the total number to 1,442. After Interprac, the next biggest advice firms (by number of complaints) are Financial Services Group Australia (443 complaints), United Global Capital (354 complaints) and MWL Financial Services (249 complaints).
At this stage, Interprac hasn’t been factored into next year’s cost projections for the Compensation Scheme of Last Resort as it is currently solvent. However, the revised levy estimate report from the scheme’s principal actuary, Finity Consulting, suggested that Interprac’s inclusion would increase Shield and First Guardian-related CSLR costs to around $150 million in FY27.
The report also noted that around 3,800 Interprac clients were invested in Shield and approximately 4,300 were invested in First Guardian. Using Finity’s average estimated claim size of $67,100 for Shield and First Guardian-related complaints, and conservatively assuming a 100% crossover between Shield and First Guardian investors in Interprac’s client base, advisers could face an additional $288 million in costs should those claims ever reach the CSLR.
This possibility lends credence to the idea that advisers “will pay for Interprac when the dust settles,” as Financial Advice Association Australia chief executive Sarah Abood put it back in May.
However, any progression of Interprac complaints will need to wait until the licensee’s lawsuit against AFCA is resolved. On May 28, AFCA released a statement confirming the proceedings, adding that determinations will be suspended in the interim.
“These court proceedings relate to AFCA’s lead determinations involving InterPrac. Court proceedings of this nature can take time and may create uncertainty while the issues are being considered by the court,” AFCA said.
The statement continued: “Complaints will continue to progress through AFCA’s complaints process, including registration, allocation to a case worker, information gathering and initial assessment.
“Consumers who have not yet lodged a complaint can still do so and are encouraged to lodge as soon as possible. This ensures their complaint is registered with AFCA and can continue to progress through the investigation process while the court proceedings are underway.”
Complicating this issue further, AFCA has advised ASIC of non-payment of an Interprac determination made prior to the current legal proceedings, which means ASIC can now take action against the firm. And if Interprac fails to pay the determination, it could be forced into liquidation.
At that point, the CSLR would be all but inevitable.
Let’s hope:
InterCrap win their AFCA legal challenge for across the whole Financial chain Proportionate Liability.
CSLR is also far more broadly funded.
AIOFP win legal challenge against fairness of CSLR and MIS not paying.