Planners pin-pointed by FOS at Royal Commission
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry has been told that financial planners account for more than a third of serious misconduct identified by the Financial Ombudsman Service (FOS) since early 2012.
In a submission responding to questions from the Royal Commission, the FOS acknowledged that credit issues made up by far the most complaints it dealt with in a year, but pointed to the fact that financial planners/advisers accounted for the majority of serious misconduct investigations.
Pointing to its activities since 2009/10, the FOS submission said eight in ten (81 per cent) of all serious misconduct issues related to investments and failures to pay a FOS determination.
“Financial advisors/planners account for more than one-third (39 per cent) of serious misconduct issues we have identified since early 2012,” it said.
Discussing unpaid determinations, the FOS also pointed to financial planning providers as being an issue.
“While the issue involves only a minority of our members who provide financial advice, the level of unpaid determinations at the end of December 2017 was almost one-quarter (24 per cent) of all determinations made in our investments and advice jurisdiction,” the submission said.
“Financial advisors/planners were involved in more than half (55 per cent) of all of these unpaid determinations, followed by operators of managed investments schemes (13 per cent) and credit providers (10 per cent).”
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.