FICS returns serve against criticism
TheFinancial Industry Complaints Service (FICS) has hit back following heavy criticism levelled at it by some members last week over its complaint handling procedures, labelling the accusations “disappointing”.
The complaints, reported byMoney Management, detailed a groundswell of dissatisfaction among members over decisions they believed unfairly favoured complainants, as well as frustrations at having to foot the bill for hearings, regardless of the outcome, and that complainants may be “playing havoc” with the system.
FICS chief executive Alison Maynard says the member claims were unfair, as the service has industry representation both on its panel and board ensuring the industry has input and that decisions are unbiased.
“I truly believe because we have an independent chair and both a consumer and industry representative on the panel we have a fair system that is not biased towards either party,” she says.
Maynard says while individual members may be dissatisfied with decisions, the most recent FICS annual report shows hearings have come down 60 per cent in favour of members over complainants.
She says the industry also has a say in setting FICS budgets — including fees — as well as how the service is run, through representatives on its board.
Maynard also believes the calls to charge consumers for using the service would not be accepted in the current environment.
“TheAustralian Securities and Investments Commissionwould not let us do that and no other industry does it. The industry should be happy to offer the service to consumers,” she says.
Maynard says FICS is still implementing the recommendations of an independent review into service in March by La Trobe University professor Tania Sourdin.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
