The latest data on financial advice complaints is clear evidence of the high quality of financial advice consumers are receiving from financial planners, according to the Financial Planning Association of Australia (FPA).
According to the latest Australian Financial Complaints Authority (AFCA) data from 1 July, 2021 to 30 June, 2022, 610 complaints were received related to financial advice.
This was down over 50% from last financial year when 1,238 complaints were received, and represented just 0.8% of all complaints received by AFCA.
Breaking it down, there was a 54% decline in complaints about inappropriate advice, 46% decline in complaints about acting in clients’ best interest and 15% decline in complaints about service quality.
Meanwhile, 672 complaints relating to financial advice were closed over the same period. Of these, 110 (16%) of them were closed at the registration and referral stage of the process, while 235 (35%) were resolved by agreement between the adviser and the client. At the determination stage, 50% were resolved in favour of the planner.
FPA chief executive, Sarah Abood, said the latest figures highlighted the professionalism of the financial planning profession.
“It is encouraging to see a fall in the number of complaints which highlights the ongoing professionalism of financial planners right across the country,” she said.
“Not only are the absolute numbers of complaints falling, but in many cases complaints are being resolved in the planner’s favour.”
Abood said the design and implementation of the Compensation Scheme of Last Resort (CSLR) should ensure that consumers were covered for the full range of matters considered by AFCA, including managed investment schemes.
Further, she said the Government should bear the costs of the establishment and any legacy claims relating to the scheme.
“The administration costs of a CSLR should be closely monitored to ensure that cost recovery from industry primarily compensates consumers rather than covering bureaucracy and administration,” Abood said.
