tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Complaints up but awareness low

Dispute resolution service FSCL says it is getting twice as many complaints now as it was six months ago but awareness of the role of schemes was lower than it should be.

Thursday, April 18th 2013, 6:31AM 8 Comments

by Susan Edmunds

Susan Taylor, chief executive of Financial Services Complaints Limited, said people with legitimate complaints about their financial services providers were missing out on the chance to have a fair hearing because they did not realise the option was there.

"Many New Zealanders are unaware they can seek free and independent help with problems they have with their financial services provider. Even among professionals such as solicitors and accountants, understanding of the role and powers of the financial services dispute resolution schemes remains low."

Institute of Financial Advisers president Nigel Tate said he would be disappointed if financial advisers were not making it clear to clients that disputes schemes were available to them.

He said it was possible that registered, not authorised, advisers were not providing full disclosure to their clients.

“They don’t have the same degree of disclosure. There could be an element not making it clear. It would disappoint me if that were the case.”

But Professional Advisers Association spokeswoman Jenny Campbell said all advisers, registered or authorised, must include in their disclosure statements information about the scheme they were registered with.

She said her organisation had done a lot of work with advisers on how complaints could be turned into positive outcomes. “It’s a chance to make amends and fix problems. If you’re proactive, it’s not necessarily a bad thing to have a complaint.”

She said the Financial Markets Authority wanted to see advisers’ complaints logs, even if the complaints were not serious.

FSCL has 5500 members and received 744 enquiries or complaints in the six months to the end of December.

Of the cases it resolved, about 42% were complaints against insurance companies. Complaints against lenders and finance companies made up about 16%

« Gold loses its shineIFA working on pro-bono offering »

Special Offers

Comments from our readers

On 18 April 2013 at 9:53 am Ally said:
This is just touting for business by FSCL. They should be happpy the regulatory regime is resulting in few complaints, not whinging because it's hurting their bottom line ....
On 18 April 2013 at 10:59 am Dirty Harry said:
As an IFA RFA I take issue with this whole article, Nigel's comment in particular. Of course FSCL is unhappy. They set up shop to make money from the complaints avalanche that hasn't happened. Well tough. We're not all crooks. What info does Taylor have to claim people who have complaints are missing out?

Reading the above as written; Tate is suggesting that, 1, there aren't enough complaints, 2, that (many?) RFAs either don't have compliant disclosure statements or aren't giving them out.

Well, 1, Perhaps there just isn't much to complain about, and 2, I suggest that this comment is pure speculation and Tate has no real knowledge of this subject at all - how could he?

In the context of this "AFA is the only way" theme which continues, Tate's comment pushes too far. It goes beyond promoting professionalism, promoting higher standards and simply becomes RFA-bashing.

Factoid: I am one unit standard away from NCFS L5, and may become an AFA. That decision is mine alone, and will be what is right for me, and my business. It will not make me more or less compliant, force me to disclose more than I already do, or make me less likely to be a crook, or any more or less likely to be the subject of a complaint.
On 18 April 2013 at 3:41 pm Amused said:
Well said Dirty Harry. Great comment.

If FSCL want to continue upon their crusade to try and drum up more business they will quickly alienate themselves within the industry. Remember there is more than one dispute resolution scheme available for advisers to choose from…
On 19 April 2013 at 12:07 pm Graeme said:
Well said dirty harry.
I also completed most of my L5 but to be fair, as a Fire and General Specialist, it was providing no additional value to me, my business or my customers. Six years of tertiary education and on-going CPD for 40 years I think makes me both qualified and competent. L5 added nothing as only one course, with over 100 errors in the course notes, was available for my speciality.
On 19 April 2013 at 4:45 pm Lindsay said:
Incredible really. We pay these people and they want to drum up business at our expense - There clearly are very few complaints and in a year or two perhaps the industry organisations make moves to chop them off. If there is a complaint against me resulting in a financial payout - that is what my PI insurer is for. Not some hand holding bunch of redundant people making something out of nothing. The sooner they are gone the better. God I pay them and stop them starving and yet they want to work against me.
On 19 April 2013 at 5:37 pm Graeme Lindsay said:
Well said Dirty Harry, Amused and Ally!

If I had been unfortunate enough to have joined the FSCL scheme, I'd be looking at joining the Insurance Ombudsman scheme at the end of my current term. I would object to paying the salary of a person who clearly doesn't respect those paying her salary!

Does she have evidence to back up her claims, or is this just posturing?
On 22 April 2013 at 1:51 pm Phil Menzies said:
As I said when doing level 5 'give it 5 years' and there will only be a need for one Disputes Service, unless they become very good at creating complaints. Lets have a breakdown of the 744 'complaints/enquiries. How many were actual complaints??
On 22 April 2013 at 2:30 pm Paul Carrick said:
Reading this raises a few issues for me
1)How does this person know people are missing out? fact or fiction
2) Lack of diclsoure docs and that people dont know- inconclusive
3)68% of complaints against three categories- what is the other 38% and how many are specifically against advisers?
4) What about focusing on the good work advisers do and the issues that they may fix that don't even require an external body.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com