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FOS complaints about advisers jump 45%

Natalie Ceeney
FOS chief Natalie Ceeney appearing before MPs last year.

The number of complaints about advisers referred to the Financial Ombudsman Service has jumped 45 per cent over the last year from 2,857 to 4,139.

However advisers continued to account for fewer than 1 per cent of overall FOS complaints.

The FOS’ 2012/13 annual review, published today, reveals it received a total of 508,881 new cases in the year to the end of March, up a massive 92 per cent from 264,375 cases the previous year.

The FOS upheld 51 per cent of complaints against banks, compared to 70 per cent in the previous year. It upheld 42 per cent of complaints against advisers, down from 54 per cent.

The FOS ‘adviser’ category excludes banks and other tied advisers, as well as mortgage and GI brokers.

Payment protection insurance complaints rose 140 per cent from 157,716 in 2011/12 to 378,669 in 2012/13.

Complaints involving banks rose over 120 per cent from 173,166 to 386,750. Banks accounted for 84 per cent of PPI complaints, 69 per cent of mortgage complaints, 30 per cent of investment complaints and nine per cent of pension complaints.

Advisers accounted for 21 per cent of pension complaints, 14 per cent of investment and 2 per cent of mortgage complaints.

Overall the FOS paid compensation to consumers in 49 per cent of cases in 2012/13, compared to 64 per cent in 2011/12.

Plan Money director Peter Chadborn says: “The fact advisers account for so few complaints is all well and good, but it would be nice if advisers were regulated with that in mind.”

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Comments

There are 13 comments at the moment, we would love to hear your opinion too.

  1. The FOS ‘adviser’ category excludes banks and other tied advisers, as well as mortgage and GI brokers.

    Doesn’t really give the full picture then.

  2. Complaints rise coincides with recession.

  3. Except that it shows 76% as relating to banks!
    That’s about all the picture you need to see isn’t it?

    Ian Coley
    Partner
    Medical Investment Services

  4. peter gabbett 29th May 2013 at 9:30 am

    its not the amount its the number of upheld complaints that is the important figure.

    the sue culture is with us!

  5. incompetent regulators 29th May 2013 at 9:55 am

    FOS is the biggest ambulance chaser on the world.

  6. What would be really helpful data, would be to see what proportion of ‘adviser’ complaints put before the FSA have been via claims management companies and what % of these have been upheld/rejected.

  7. It is a real shame that the press in general prefers to make any item as depressing as possible. MM is no different in this respect to my Daily Telegraph.

    Why couldn’t this headline have been:

    58% of complaints against advisers not upheld and this sector only accounts for 1% of all complaints anyway.

    That creates a somewhat better view, don’t you think?

  8. You are on the money Harry !!

    Our stupid regulator (FSA/FCA makes no difference) keeps harping on about consumer confidence and all they can do release to the press/public is miss-selling this miss-selling that, cost here, fines there, lets make every-one bombard the consumer with more paper than the rainforests can deal with.

    Give us a bit of respect please ? you may never know you might then get some back !

  9. re. above comment by me : FSA should be FOS..doh!

  10. Same difference Steve – we know what you meant

  11. spot on Harry

  12. “Overall the FOS paid compensation to consumers “……

    I didn’t realise that FOS was now picking up the tab for compensation…. How kind!!!

  13. Julian Stevens 30th May 2013 at 11:08 am

    In the context of what must be millions upon millions of advised tranactions effected through IFA’s over the past, say,10 years, complaints referred to the FOS of just 4,139, of which only 42% (1,739) were upheld must be a vanishly tiny fraction of a percentage.

    So where’s the risk-based, proportionate and targeted approach to regulatory inspection and enforcement on the part of the FCA, as set out in the Statutory Code of Practice for Regulators?

    What are you trying to get done about this APFA?

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