FICS reports fall in consumer complaints

The Financial Industry Complaints Service (FICS) has reported a considerable reduction in consumer complaints against financial services providers.

The number of new complaints the service received fell by 251 from 1,416 in 2004 to 1,165 in 2005.

FICS attributed this fall to less volatile financial markets coupled with its members improving their internal dispute resolution processes.

Another contributing factor was slower growth in the number of new FICS members in 2005 compared to 2003-04, which saw a burst of new members following the introduction of Financial Services Reform.

FICS chief executive Alison Maynard said the decrease in complaints enabled the service to eliminate a backlog of complaints that were waiting to be resolved.

“The number of complaints awaiting an outcome was reduced by 287 from 915 at the end of 2004 to 628 at the close of 2005, which is about the number of complaints we would expect to have in progress at any given time,” she said.

FICS resolved 284 complaints during 2005, which comprised 147 life insurance, 103 financial planning, 19 stock broking and 15 managed investment complaints.

The service also increased the number of internal dispute resolution workshops it conducted for its members.

During the last year, the service dealt with more than 13,000 telephone enquiries regarding consumer disputes.

FICS is a free national service for consumers, approved by the Australian Securities and Investments Commission (ASIC).

It is a condition of ASIC that Australian Financial Services Licence holders belong to an approved external dispute resolution scheme such as FICS.