by Susan Edmunds
“Many clients say they weren’t given critical information, and sometimes they simply haven’t understood the information provided by their financial adviser,” said Insurance and Financial Services Ombudsman, Karen Stevens.
“Improving communication and demonstrating good processes are two ways to demonstrate the value financial advisers can add for clients, while also ensuring compliance and risk protection.”
IFSO has released a report covering the first quarter of this year, which shows a steep increase in the number of complaints.
“From December 2015 to March 2016, we received 985 complaint inquiries, and we accepted 100 complaints for investigation,” Stevens said. “During the same period last year, we dealt with 895 complaint inquiries and accepted 60 complaints.”
Seventeen of the 100 complaints related to the Canterbury earthquakes.
The IFSO Scheme has also seen a slight rise in complaints relating to credit contracts from the same four-month period last year, and a rise in complaints about financial advisers, from zero to four complaints.
IFSO is also running a membership promotion in which people who refer a friend to the scheme qualify for a discount on their annual levies.
When the existing member and the new participant register and pay, they get $50 each off the cost of the scheme membership for the 2016/2017 financial year.
Individual financial advisers pay $400 a year for IFSO membership.
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