Adviser complaints fall 9% year-on-year
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The number of complaints about adviser firms fell 9 per cent for the first half of 2010 compared to the same time last year, FSA data reveals.
Complaints data published by the FSA shows that personal investment firms, which includes multi-tied advisers and IFAs, received 20,397 complaints in the first half of the year, down 9 per cent from the 22,552 adviser complaints recorded for June 2009.
Adviser complaints have risen 46 per cent from 13,994 for the second half of 2009.
Complaints about banks and building societies have risen 5 per cent over the year from 1,189,076 to 1,252,467.
Meanwhile life insurers have seen the level of complaints fall by 30 per cent over the year, from 63,599 to 43,928.
General insurance intermediaries have seen complaints rise from 138,753 to 147,163, a 6 per cent increase.
Mortgage businesses, which includes lenders, brokers, and administrators, has seen the biggest proportional rise in the number of complaints. Mortgage complaints have gone up by 55 per cent from 14,655 to 22,662.
Complaints about investment management firms, which covers custodial service providers, discretionary and non-discretionary investment managers, personal pension operators and venture capital firms, stayed relatively flat. Investment management firms received 12,729 complaints in the first half of the year, compared to 12,733 at the same time in 2009.
Advisers were also among the quickest type of firm to resolve their complaints. Some 95 per cent of complaints received by investment management firms, life insurers, and advisers were resolved within eight weeks.
This compares to 83 per cent of complaints received by banks, and 87 per cent of mortgage complaints.
Some 49 per cent of complaints against investment management firms were upheld, compared to 35 per cent for advisers, 41 per cent for insurers, 35 per cent for GI intermediaries, and 47 per cent for mortgage businesses.
The proportion of complaints upheld against banks and building societies is 23 per cent, due to a higher level of closed complaints following the test case against unauthorised overdraft charges.
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Readers' comments (3)
Nick | 30 Sep 2010 12:36 pm
right , so in FSA speak, better star regulating IFAs a bit more then!!
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Julian Stevens | 30 Sep 2010 12:53 pm
So why, in the face of such data, is the FSA determined to pursue harder than ever its pernicious campaign to exterminate all but the HNW corner of the IFA sector?
Surely, despite the occasional malfeasance, if any sector of retail financial services is entitled to light touch regulation, it must be IFA's? And yet, perversely, the very sector responsible for the greatest number of transgressions and complaints, and badly handled complaints at that, is the one which enjoys the lightest regulatory touch of all. A bit damned fishy, isn't it? And, amazingly, the FSA itself apparently doesn't consider itself to be easy on the banks! Canary Towers is obviously a very different place from the real world.
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Bian Harrison | 30 Sep 2010 1:22 pm
With a record of complaints against banks does it not prove that if they can exploit any loop hole in regulation to sell they will. If they are allowed to offer perceivd free advice there is little doubt that they will, and we all know that is simply not the case.
Please FSA take note where the complaints are coming from and regulate accordingly.
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