Advice companies rank well on IDR
A new Australian Securities and Investments Commission (ASIC) report on Internal Dispute Resolution (IDR) has revealed that financial advice firms performed better than most.
The report revealed that most complaints related to general insurance products (33% of all complaints), followed by credit products (22%) and deposit-taking products (15%).
Nonetheless, ASIC commissioner, Alan Kirkland said there were concerns about under-reporting in some segments.
The report revealed that in the 2023-24 financial year, financial firms reported 72,238 complaints relating to investments and advice, with around 63% resolved on the same time.
It said more than $13 million I total monetary remedy was provided to investment and advice complaints.
It noted that the top three products for investment and advice complaints were:
- Shares (52%)
- Investor Directed Portfolio Services (11%)
- Other managed investments (7%)
The report said the top three issues for investments and advice complaints were:
› service-related issues (45%)
› general service delay (14%), and
› technical problems (9%).
The top three outcomes for investments and advice complaints were:
› no remedy, or apology or explanation only (49%)
› service-based remedy (43%), and
› monetary remedy (7%).
Of course, any positive reports on Advisers ASIC manage to try to turn around and say the problems are under reported.
ASIC, why don’t you spend more time focusing on the 4 bigger areas of complaints ?
No said ASIC, we hate Advisers, we will focus on no. 5 as that is Advisers.
So ASIC focus ALMOST ALL THEIR ATTENTION at Advisers that are well down the complaints list.
CAN IT BE ANY CLEARER THAT ASIC IS BIASED AGAINST ADVISERS.
We’re low hanging fruit to them…mostly smaller businesses that can’t really afford to fight back. Easier for ASIC to get heads on sticks than with a large corporation
Agreed.
The data is clear, financial advisers on the most part do a great job and our clients are very happy and thankful. The data matches what most of us think within the industry, such as shares being a basket case which can often lead to a complaint. I saw very few complaints regarding superannuation products. Additionally, not much negative feedback regarding personal insurance, which is an absolute headache for any adviser to write business for. However there were plenty of complaints about general insurance, the most complained product. Oh and service related issues, who would of thought bogus levies and Comp of last resort would cost jobs (mostly administrative) which then adds pressure thus leading to a worse service delivery. And now Stephen jones is letting the big super boys back in town, how about ASIC and the treasury leave us alone and let us pick up the pieces.