Planners tardy in releasing client files
The Financial Planning Association (FPA) has reported an increase in the number of complaints about advisers failing to let go of clients wishing to leave a practice.
In its complaints and discipline report for the July-September quarter, the FPA said it had seen an increase in the number of complaints relating to the “transfer of a client’s business from one adviser to another”.
The FPA said complaints had been received from both clients and the new financial planners accepting their business, with complaints specifically involving the failure or delay of the incumbent adviser to transfer client files and other documents to the new adviser.
In its report, the FPA said advisers must be “mindful of how the professionalism of such conduct is perceived by the client, the external community and industry peers”.
Furthermore, slow transfers could have financial repercussions for the client, the association warned.
The FPA’s rules require planners to make all reasonable steps to facilitate the transfer of client files within 21 days of the receipt of the request.
The FPA received 18 new complaints in the June-September quarter. It has 53 ongoing investigations, with seven being finalised in the last quarter.
One member was expelled during the quarter — Tarrant Financial Consulting Pty Ltd. The New South Wales-based advice firm entered voluntary administration in July this year, following significant losses suffered by its clients in funds managed by Trio Capital.
The FPA confirmed that Tarrants’ membership was terminated when the company entered voluntary administration, but would not confirm whether it had begun or intended to begin an investigation into the group.
The FPA's latest quarterly complaints and disciplinary report can be found in the November 2010 edition of Financial Planning Magazine.
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