Most Fincorp complaints to FICS from direct investors
Most enquiries to the Financial Industry Complaints Service (FICS) relating to the failed Fincorp Group have been from direct investors, according to chief executive Alison Maynard.
By close of business yesterday, FICS had received “about a dozen enquiries, mostly from investors who had dealt direct” in the property and funds management group, which went into voluntary liquidation on Friday, Maynard said.
An estimated 7,800 investors are reported to hold a total of $290 million worth of debentures or notes issued by Fincorp — with an average age of 60, and half from NSW.
They are scheduled to hear newly appointed administrator Korda Mentha outline a salvage strategy for the group this Friday at the inaugural creditors meeting in Sydney.
“While it is very early days, most of the enquiry calls coming into FICS have been from investors who have bought the Fincorp product direct,” Maynard said.
However, she expects the extent of investments placed in Fincorp by planners on behalf of clients to be revealed over time as the enquiries to FICS increase.
“If you bought Fincorp product through an adviser you would probably wait to see what return you got from its administration before making a complaint to FICS on the appropriateness of the investment advice you received.
“After all, we are still receiving fresh complaints at the rate of two a week in Westpoint, which had only 3,500 investors. So it obviously takes investors a while to decide that they will make a complaint against their planner.”
Recommended for you
Numbers are in for 2024, with Wealth Data confirming how many advisers left during the calendar year and which business models saw the largest growth in terms of new licensees.
Praemium has seen its highest net inflows in over two years for Q2 FY25 as its Powerwrap platform returns to inflows after five consecutive quarterly outflows.
New adviser and licensee relationships have helped Netwealth to expand its business pipeline in the latest quarter as it reports $4.5 billion in quarterly inflows.
Insignia Financial has announced total quarterly net inflows of $2.3 billion as well as a third bid from Bain Capital.
