Ombudsman has few qualms with advisers

A new report by the banking sector’s chief complaints body has found the number of disputes involving bank-based financial planners remains relatively low, despite a steady increase compared to previous years.

While the Banking and Financial Services Ombudsman handles only a small proportion of the total disputes between advisers and their clients, its annual report shows 46 separate complaints about bank-based planners were registered over the past year. This compared to 21 the previous year and only 11 the year before that.

The rise came in a year when the total number of disputes handled by the Ombudsman fell 15.5 per cent.

However, Ombudsman Colin Neave said the rise did not automatically imply a drop in the standard of bank-based planners.

“We certainly did not notice a drop in the standard of advice compared to previous years in the cases we looked at,” he said.

Most of the disputes referred to the Ombudsman related to credit cards, housing loans and savings accounts.

Disputes involving bank-based advisers are handled by the Ombudsman if they also involve some advice on consumer banking products, such as home loans. Other financial planning related complaints are generally handled by the Finance Industry Complaints Service.

Financial Planning Association chair-elect Kathryn Greiner defended the reputation of financial advisers.

“I doubt if the figures indicate a drop in quality in the giving of advice,” she said.

“I think it is a case of the public becoming more aware. When they are not happy, they are much more aware of where they can go to lodge their complaint.”