The Australian Financial Complaints Authority will have enhanced powers to exclude complainants and paid representatives whose conduct is unreasonable, under proposed changes to its rules and operational guidelines. Later this month, AFCA will issue a consultation paper outlining the proposed changes. In addition to tighter management of the conduct of paid representatives and complainants, they will provide clarity around the rules affecting professional and sophisticated investors and AFCA’s approach to procedural fairness. The changes are in response to recommendations of a Treasury review of AFCA in 2021 and also to member feedback received during that review. AFCA deputy chief ombudsman June Smith said the aims of the changes were to ensure there is procedural fairness for all parties involved in a dispute and that determinations are timely. The Treasury review identified what it considered “broad, ungrounded interpretations of fairness” and recommended the ombudsman temper the application of its fairness jurisdiction, placing greater emphasis on legal principles and industry codes. Paid representatives are a long-standing problem for financial ombudsman services, criticised for bringing complaints without merit or dragging things out to increase their fees. AFCA will clarify its approach to excluding complaints from professional or sophisticated investors to overcome confusion about who is eligible to make complaints. It will also clarify its decision review process to give members greater certainty. And it will encourage early settlement of complaints where it deems an appropriate settlement has been offered. Smith said there will be an eight-week consultation period and AFCA hopes to have the changes finalised and ready for ASIC approval by August.