Adviser complaints rise 27%

FSA Front 480

The number of complaints against advisers jumped by 27 per cent in the first half of the year, FSA data shows.

Data published by the FSA this morning shows that between 1 January and 30 June the number of complaints related to personal investment firms, including tied financial advisers, IFAs and arranging intermediaries, went from 27,525 to 34,886.

Unlike the Financial Ombudsman Service, the FSA does not split out the number of complaints that relate only to IFAs.

Personal investment firms paid out a total of almost £31m in redress between January and June this year, up 17 per cent from £26.6m the previous six months.

Complaints about investment bonds dropped 7 per cent to10,126, compared to 10,885 complaints in the second half of last year.

But complaints about “other investment products or funds” rose 23 per cent from 5,838 to 7,208.

Personal pension complaints increased 7 per cent from 23,099 to 24,640. Complaints about investment-linked annuities shot up by 66 per cent over the last six months from 543 to 902.

Investment management complaints, including complaints about platforms, remained flat at 5,111 compared to 5,154 in the second half of last year. Complaints about structured products rose 34 per cent from 1,692 to 2,266, following a 40 per cent rise in the previous six months.

Of the 13,374 closed complaints against advisers in the first half of the year, 39 per cent were upheld, compared to 34 per cent of 9,041 adviser complaints resolved between July and December last year. The proportion of complaints upheld about investments remained flat at 45 per cent, while the proportion of complaints upheld about decumulation, life and pensions fell slightly from 44 per cent to 42 per cent.

Overall there were 3,577,599 complaints about financial services firms in the six months to the end of June. Of the total, 2,541,430 related to general insurance and pure protection, which was mainly due to payment protection insurance complaints. Banks and building societies accounted for 2,767,913 complaints.

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Comments

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

  1. And this increase is happening under the most stringent/draconian regulatory regime in history? How can this possibly be? Who`s in control? What on earth is happening? Someone must not be doing their jobs properly! I wonder who?

  2. Interesting that the FOS does not split up the adviser types. Is it because the term “adviser” is perceived to be all encompassing to include bank and tied staff, instead of determining where the real problem lies.

    I wonder what their excuse is as the tables they put out at the end of each year does differentiate between bank, tied and Independent.

    One more smack in the mouth for IFAs, these people really are biased and beyond the pale.

  3. I agree Ned, yet another cover up!

  4. I have no doubt that the activity of ‘Claims Management’ firms has a majorimpact on these numbers. I have personally received numerous cold calls from these ambulance chasers, and taken every opportunity to express my anger at the effect their actions (which are usually specuative at best) has on the industry. Consumers who are only sold the prospect of a windfall are happy to play their game and sign whatever is needed in the hope of getting cash out of advisers, who invariably tried to do the best by them from outset.

    A sad state of affairs!!

  5. No, No – I believe it.

    We have a Regulator and a system that goes out of its way to encourage complaints. Only this week the FOS (Fatuous Out of touch Sillybillies) stated that we should all encourage complaints.

    The FSA is complaints obsessed. Link this to our money for nothing, entitlement culture and you are bound to see increases. While the Great British Public is occupied complaining to commercial entities it keeps their minds off complaining about the real culprits – the useless lot in Westminster.

  6. Have you had an acident recently that has not been your fault?
    Our records indicate that you have been mis-sold PPI
    It is called claims culture who betide you if the investment that you have sold falls in value.

  7. Of course the FOS is complaint obsessed. It is their raison d’etre. Without them they wouldn’t have jobs!
    It is ironic that whilst we are being told to become a
    ‘profession’, the legal profession is busy turning itself into a trade.

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