IFA FOS complaints fall again- 1.5% share
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Complaints against IFAs accounted for just 1.5 per cent of all Financial Ombudsman Service cases in 2010/11, down from 2 per cent in 2009/10.
The FOS annual review for the year to March 31, published this week, shows that while the proportion of IFA-related complaints fell, the proportion of bank complaints climbed from 61 per cent to 65.5 per cent.
IFAs made up 1.5 per cent of 206,121 cases in 2010/11, around 3092 cases, compared to 2 per cent of 163,012 cases the previous year, around 3260.
The FOS says IFA complaints were skewed upwards for 2010/11 due to a large number of complaints against one particular firm. FOS statistics on the most complained about investment businesses from July to December 2010 show that Towry had the most complaints, with 345, followed by Barclays Bank with 245.
IFAs accounted for 25 per cent of pension complaints, 14 per cent of investment complaints and 8 per cent of mortgage complaints. This compares with 2009/10 figures which show IFAs accounted for 28 per cent of pension complaints, 12 per cent of investment complaints and 9 per cent of mortgage complaints.
Fifty three per cent of complaints against IFAs were upheld, compared to 52 per cent of bank complaints, 33 per cent of life insurance and investment provider complaints and 80 per cent of complaints against intermediaries selling payment protection insurance.
The FOS says the decline in IFA complaints reflects a 30 per cent fall in the overall number of investment and pension complaints.
A spokeswoman says: “Within the complaints we received about IFAs, a substantial number related to one business.”
ARK Financial Planning director Philip Stevenson says: “IFAs offer relationships, banking is all about sales. If you just flog products, you will get complaints.”
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Readers' comments (18)
Exasperated Me | 18 May 2011 9:12 am
Never mind, the banks will manage to reduce IFA numbers with various cunning plans, the RDR for instance.
The fewer IFAs there are the bigger the banks share of complaints, talk about shooting one's toes orf.
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Derek Gair | 18 May 2011 9:20 am
That old retail distribution model is DEFINATELY broken - NOT !!!!
I reckon McCarthy was under the influence of drink (pissed) when he made that Gleneagles speech you know !! Its the ONLY thing I can think of to justify his stupidity - It is utter tosh to say we needed a 'Retail Distribution Review' and this is another little bit of evidence to prove it.
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Increasingly Frudtrated Adviser | 18 May 2011 9:34 am
Of course, the FSA will claim that the low number of complaints is due to their monitoring and vigilance. Which of course it could be. Perhaps then, they should leave us harrassed IFAs alone and GO HAMMER THE BANKS!!!
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Julian Stevens | 18 May 2011 9:40 am
“Within the complaints we received about IFAs, a substantial number related to one business.”
It would be interesting to know just which business that was and also what the data would look like with the complaints in respect of that one business taken out. Better still.
So ~ the more the IFA sector improves on all fronts, the more the FSA seems determined to beat us all over the head with its arsenal of hatchets and sledgehammers. And Hector Sants claims the FSA has no agenda against small IFA's? It doesn't stack up, does it? Why is the FSA so obsessed with the idea of fixing what is, whilst admittedly not perfect, manifestly not broken?
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Anonymous | 18 May 2011 9:45 am
If it ain't broke, don't fix it !
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Alan Lakey | 18 May 2011 9:57 am
No doubt the FSA and Hoban will say that we must not interpret these figures as proof that IFAs offer better advice.
Facts increasingly speak for themselves and the RDR spin is dropping away now that facts and relaity are coming home to roost
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Anonymous | 18 May 2011 10:03 am
Wouldn't surprise me if it was an anagram of "wry towal"
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MH (Not Mark Hoban!!) | 18 May 2011 10:17 am
Bus loads of commission hungry policy flogging useless IFA's will be leaving in a matter of months now ............ just as well don't you think as the stats prove without doubt that they must be driven out!!!!
RDR ............... Joke!
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Derek gair | 18 May 2011 10:42 am
'wry towal' - yes the prime suspects me thinks
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Peter Turner | 18 May 2011 10:57 am
Julian - I think the words "Towry had the most complaints, with 345" might just be a clue as to which business it was!
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