Report reveals miniscule number of advice complaints

Complaints about financial planning and advice represented only a microscopic proportion of complaints received from customers by the major banks, according to the latest report from the Banking Code Compliance Monitoring Committee.

The report, released this week, revealed that complaints received about financial planning and advice were far less than one per cent, while those relating to insurance, superannuation and wealth were barely more discernible.

As the chart generated by the BCCMC confirms, most complaints related to other bank products such as credit cards, transaction accounts and home loans.

The committee found that banks breached their Code of Banking Practice 10,123 times in 2017-18 and that the self-reported breaches affected more than 3.4 million people, costing them more than $95 million.

However, the committee said the impacts had “likely been significantly understated”.

CCMC chief executive, Sally Davis said she was not convinced that the decrease in reported breaches reflected improved compliance with the Banking Code by subscribing banks.

“We remain concerned about banks’ compliance and their ability to identify, record and report Code breaches,” she said. 

“Lending, collecting debt and resolving customer complaints are core areas of banking activity, yet several banks reported zero breaches of the Code’s obligations in these areas. Five banks reported zero breaches of the Code’s provision of credit and internal dispute resolution obligations, while six banks reported no breaches of their debt collection obligations. This is unlikely to accurately reflect the true situation on the ground.”