Complaints about banks rise to over 1.25 million
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Complaints about adviser firms fell by 9 per cent in the first half of this year compared with the same period last year while complaints about banks and building societies rose by 5 per cent.
Data published by the FSA last week shows that personal investment firms, which includes multi-tied advisers and IFAs, received 20,397 complaints in the first half of 2010, down from 22,552 complaints in the first half of 2009.
However, complaints about advisers rose by 46 per cent since the second half of last year, when the total number was just 13,994.
Complaints about banks and building societies increased by 5 per cent in the first half of this year to 1,252,467, up from 1,189,076 in the first half of 2009.
Thameside director Tom Kean says that the data shows that FSA scrutiny of advisers is not proportionate to the number of complaints received about them.
He says: “These statistics are completely and utterly predictable. The FSA has failed to understand that most small IFA practices take their advice very personally and want to develop lifelong relationships with their clients, whereas banks are just selling machines that do not give too much thought to ongoing relationships. Staff in banks are incentivised to sell the bank’s products whether they are suitable for the customer or not.”
GDC Associates partner Derek Gair says: “Regulation of financial services has never been representative of where the complaints come from. The fact is that those who get advice from IFAs have few issues with the advice given.”
The FSA data found that mortgage businesses, including lenders, brokers, and administrators, have seen the biggest proportional rise in the number of complaints.
Mortgage complaints went up by 55 per cent from 14,655 in the first half of 2009 to 22,662 in 2010. Complaints to life insurers fell by 30 per cent, from 63,599 to 43,928.
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Readers' comments (1)
Julian Stevens | 7 Oct 2010 9:29 am
Yet still the FSA clings to the same stale old mantra that it doesn't favour bank selling practices at the expense of the IFA sector. It's just amazing how the FSA expects anyone to believe it. This is one lie which, no matter how often it's told, will never become accepted as the truth.
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