Financial advisers only make up 1.4% of complaints to the Australian Financial Complaints Authority (AFCA), with the average compensation being $20,000.
Of the 72,700 complaints received last year, 40% were for credit, 24% for general insurance, 12% deposit taking, 8% for superannuation, 7% for payment systems.
For investments and advice, that was 6%, but that included foreign exchange and managed investment schemes.
Life insurance similarly accounted for a low amount of cases – 2% overall.
Speaking to a Senate Committee, David Locke, AFCA chief executive and chief ombudsman, said it had received 997 complaints in total in the last 12 months.
“The number of complaints with get with regard to financial advisers is actually quite low,” Locke said.
Comments
Given that complaints are so low, and financial advisers are already overburdened with regulators, surely now is the time to remove financial advisers from AFCA. Not only would it help to make professional advice more accessible to more people, it would move the profession closer to a SINGLE Disciplinary Body as recommended by Hayne.
this isn't going to happen until both the AFA and FPA spend $1,000,000 per month in advertising telling the public, and comparing the number of complaints that financial advisers received against Doctors for example. for your information, it's about 10,000 for doctors and 1,500 for financial planners per annum. why isn't this public knowledge?
doctor aqf 7 vs financial planner aqf 8 or higher award to qualify. plus FASEA exam. but first, we also do no harm. thank you.
we NEED TO SPEND 420,000,000 On advertising telling every media outlet (they will love the money of course) over and over and over and over again until we see them stop referring to regular criminals and fraudsters (for whom we have jails) as FINANCIAL PLANNERS.
the media also needs to be taken to task. remember it only cost the former commonwealth attorney general $500k in legal fees to commence legal proceedings for defamation but it cost the ABC $750,000 and it would have cost them $1.5m in legal fees if it was a full-blown trial.
so we need to USE LEGAL MEANS AVAILABLE TO US TO DEFEND OUR PROFESSION AGAINST DEFAMATION rather than having the stupid members' money $20m across AFA and FPA sitting in a term deposit earning SWEET FA.
if either of these two bodies is worried about member numbers start by getting a top-tier PR firm then spending $20m trust me for $20m even the NSW Premiers' boyfriend will be interested in legal work.
get to work AFA and FPA and ATTACK!!! if you don't it'll be all over red rover by 31st December 2021.
the oracle has warned you.
typo should be $20,000,000 if only the AFA and FPA had $420,000,0000 million, they'd first be increasing their executive bonus pool. ka-ching.
P.S. re increasing the bonus pool is not a slight on the AFA or the FPA.
that is how all non-profit membership bodies in Australia operate. CAANZ for example paid its CEO $750,000 (last known) and CPAA paid $1,500,000 to the infamous Alex Malley of "I will liberate financial advice" fame remember he and medcraft (longo, who likes to play the bongo's predecessor, longo bongo, is not going to do anything) and the IPA CEO something like $650,000 plus BONUS.
these associations are a relic of the past these days you can get a Facebook page and generate just as much credibility, heck you could even put fake news on it and it's all credible.
so FPA and AFA, shake it off and GET to WORK. let's humiliate, name, and shame baby. Australia: it's about blaming, naming, and shaming (and getting into eyeball into debt and buying a residential property or 10)
p.s the oracle, the countdown to 5,000 has commenced.
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