Adviser complaints around 1% of AFCA total
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.
Recommended for you
Advisers could find themselves unable to receive the fair market price of their advice as the Delivering Better Financial Outcomes legislation states superannuation trustees can reject deductions that are not charged on a cost basis.
Two advice professionals have shared five key takeaways as to how advisers can strengthen their communication with clients, especially at review time, in order to build deeper relationships.
The Financial Services Council has launched the Digital Advice Expert Group to support policy development around digital advice adoption and ensure greater accessibility for Australians.
MLC Asset Management’s managed account offerings have hit $2 billion in funds under management, underpinned by over half of financial advisers’ usage of the investment products.