View more on these topics

Advice complaints plummet in second half of 2015

Stressed-man-on-phone-angry-700.jpg

Complaints against advice firms plummeted in the second half of 2015, the latest Financial Ombudsman Service data reveals.

The FOS recorded 4,136 complaints about life and pensions advice between 1 July and 31 December 2015, down 12 per cent from 4,680 in the first half of the year.

Similarly, investment advice complaints fell 22 per cent, from a total of 3,719 in the first half to 2,898 in the second half.

A FOS spokesman says the drop in complaints can be attributed to the “relative stability” of financial markets during the period.

Sesame was the most complained about advice firm during the period, receiving 116 new complaints, down 33 per cent from 172 in the first six months of 2015.

Some 27 per cent of complaints against Sesame were resolved in favour of the consumer.

Openwork was next on the advice list with 79 new complaints, down 29 per cent from 111 in the first half of the year. The uphold rate against Openwork was 19 per cent.

Interactive Investor, the online platform, was subject to 63 complaints, down 17 per cent from 76 in the first six months. However, the uphold rate was 71 per cent – far higher than the average among other financial services firms.

St James’s Place was hit with 61 complaints during the first half of the year, down 13 per cent from 70 complaints in the six months prior. Just over a quarter of resolved complaints against SJP were upheld during the period.

Prudential was the most complained about pension provider in the second half of 2015, followed by Phoenix, Aviva, Royal London and Friends Life.

The list of investment complaints, meanwhile, is dominated by banks, with Lloyds, Barclays, Bank of Scotland, HSBC and Natwest making up the top five.

In total the Ombudsman received 164,347 complaints in the final six months of 2015, down 6 per cent on the previous period.

Excluding PPI complaints, the total figure was 71,663 – down 10 per cent.

The average uphold rate was 53 per cent, ranging from 5 per cent to 97 per cent across individual businesses.

Bank of Scotland was the subject of the most individual complaints (22,089), followed by Lloyds (21,304) and Barclays (17,781).

Recommended

Wells Street Journal: The award, the Webb and the wardrobe

Not long ago Royal London director of policy Steve Webb held the high office of minister of state for pensions. One of the perks afforded high ranking officials is the ability to leave events early without tutting from the audience. Indeed, Webb would often make a speech and then immediately dash for the exit. However […]

Tyrie-Andrew-2012-700x450.jpg

Andrew Tyrie condemns Treasury over OBR interference

Treasury committee chairman Andrew Tyrie has condemned attempts by the Government to make non-factual changes to reports from the Office for Budget Responsibility. Reports emerged in mid-September that Treasury officials had asked the OBR to alter the wording of its independent forecasts, including requesting the removal of references to “steep cuts”. While the phrase was […]

The waiting game: Delay to “impossible” Mifid II deadline leaves advisers in limbo

Experts fear the delayed deadline for implementing Mifid II means clarification of Europe-wide rules for advisers on charges disclosure and inducements are a long way off from materialising. The European Commission announced last week the deadline for member states to comply with the legislation would be delayed due to the “exceptional” challenges firms and regulators […]

Europe-European-Flags-EU-700.jpg
2

Sterling falls as Cameron announces EU referendum date

The pound is on-track for its largest one-day fall following the backing by several large groups for a Brexit, as Prime Minister David Cameron unveiled the date of the vote. At the weekend Cameron revealed the in-out referendum for the UK in the European Union will be held on June 23rd. The price of sterling versus the dollar […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. The markets were stable for the last half of 2015? Really?

  2. Again adviser complaints down again. This huge empire to solve a non problem

  3. Absolutely Garry – I was a Sesame adviser and my one complaint this decade cost me £550 (it was rejected by FOS but I still got charged).

  4. A FOS spokesman says the drop in complaints can be attributed to the “relative stability” of financial markets during the period. Which I take to mean is clients are happy with the advice they’ve received when things are going well but as soon as they don’t…………..!!!

  5. Stuart Duncan 23rd February 2016 at 10:31 am.
    This would be the same network that instigated complaints (or, tried too) against their own members by writing to clients asking them if they wanted their business reviewed as they might have been miss-sold to. This was after they’d originally reviewed the case file and deemed it suitable. Talk about biting the hand that feeds you.

  6. I put it down to the sterling, and tireless hard work from the regulator !! after all the RDR has been a outstanding success now evidenced in the results………. big bonuses at the FCA for all then ? a well deserved pat on the back, after all you are not there to be liked are you ?

    (I do hope readers, realize I am being extremely patronizing !)

  7. This is the calm before the storm for two reasons;
    1. Markets have fallen, so the complaints, vexatious or otherwise, will rise.
    2. Many Claims Management Companies are gearing up to attack the Adviser market as PPI complaints slow down.

Leave a comment