FCA data reveals 87 per cent jump in Sesame complaints

Sesame has seen an 87 per cent year-on year increase in the number of complaints it received between July and December last year.

Data published by the Financial Conduct Authority today shows that Sesame received a total of 1,978 complaints in the second half of last year, compared to 1,060 in the same period in 2011.

Sesame upheld 15 per cent of its complaints between July and December 2012.

Openwork received 710 complaints in the second half of last year, while Personal Touch Financial Services had 523 complaints.

The three companies were the only adviser firms to make the FCA’s complaints table, as the regulator only requires firms with more than 500 complaints within a six month period to publish their complaints data.

As Openwork and PTFS did not receive over 500 complaints in the second half of 2011, there is no comparable data for these firms.

Of Sesame’s total 1,978 complaints, 840 related to decumulation, life and pensions products, and 736 related to general insurance and protection business. A further 306 related to investments, 88 related to mortgages and eight related to banking complaints.

Openwork’s 710 complaints were made up of 486 GI and protection complaints, 108 investment complaints, 57 mortgage complaints, 56 life and pensions complaints and three banking complaints.

PTFS’ 523 complaints comprised 445 GI and protection complaints, 62 mortgage complaints, 12 investment complaints and four life and pensions complaints.

Openwork upheld 23 per cent of its complaints between July and December last year, while PTFS upheld 14 per cent.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. no a suprise as claims companies are cold calling and sending in claims that are a list of complaints. the sesame team tend to roll over and pay so this encourages more firms to set up and generate more claims.

  2. Quite agree, I asked my network to obtain the name of the advisor who suggested a complaint be made. Given the absurdity and false infomration provided I wanted to give this infomration to Dept of Justice.
    No information taken by network, my query ignored and the young lady at the networtk was suprised i wasn’t happy with the complaint being withdrawn.
    I am most definately getting out now, lost all will and UK finance has become a bad joke from greedy ideoligy to arrogant inept regulators.

  3. You can’t come to these conclusions without more information.

    What were the claims? How did the sectors compare with last year?

    (Investments/Pensions/Mortgages/Life etc). Was there any correlation between commission products and the onset of RDR? I find it a little suspicious that the increase occurred in the second half of last year. But that may just be a red herring. But it may have legs. 42% related to pensions, 37% related to life – these two were potentially the largest commission earners. 15% relating to investments would appear to reflect the lower commission rates (comparatively). And mortgages at 4% may reflect the shortage of loans and or the input of the lenders.

    What percentage of complaints was attributed to those not now qualified to Level 4?

    What was the uphold rate? Sesame upheld 15%, but what of the FOS?

    I’m not making any accusations, but it is facile to try and come to any conclusions without all the data. Indeed does this figure have anything to do with Mr Martin’s departure? It may well be that the CMC are now diverting their attention to pastures new, now that PPI seems to have run its course. So we all need to be on our guard.

  4. This would be more meaningful on a pro rata basis as you would expect Sesame and Openwork to attract more complaints as they have more advisers.

    A 10 adviser firm with with 499 complaints won’t make the table but a 1000 adviser firm with 501 will.

  5. It wouldn’t surprise me at all to learn that pretty well all intermediary firms, regardless of size, have seen similar increases in the numbers of complaints coming through, largely due to the parasitic CMC’s who have no scruples about trying it on if they smell an easy few bucks. As John Broom says above, they cold call, cold text and cold e-mail everyone and anyone because it costs virtually nothing and many PI insurers are taking the view that it’s easier to pay up without a fight rather than take it to the wire ane expose these opportunistic vultures for what they really are ~ bottom-feeding scumbags.

  6. Well done Harry. Pleasse keep demanding proper information.
    Hypothetical headline – “Katz Stevens complaints up 100%”. This could represent 2 complaints this year over 1 last year – and in each year you have a million clients. The headline is accurate, but the information is total garbage because it is not placed in any valid context.
    Regretably that is what too much of the industry is run on – bad headlines, and fairy tales. AIFA should have a department that puts all this sort of information into a proper context. Bad information normally means bad decisions. Could this explain RDR?
    (Sorry about the name, but with Harry and Julian blogging next door to each other I couldn’t resist it.)

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