Storm brewing over FICS
THE Financial Industry Complaints Service (FICS) is the subject of widespread industry discontent with a groundswell building in relation to its complaint handling procedures.
AXAnational compliance manager Simon Wallace says AXA is of the opinion that FICS often rules for complainants despite dealer groups often having documented evidence strengthening their cases.
Wallace says in one such case an AXA dealer group had a statement in a financial plan which gave it a very strong case, however FICS ruled in favour of the complainant on the basis he/she didn’t understand what was written.
MeanwhileChambers Investment Plannersadviser George Takla says he has wasted “thousands of dollars” on a complaint pending before FICS only because his company had a similar name to another company.
AndGlenhurst Corporationchief executive Tony Kofkin expressed a critical view in the way his case was handled, with legal advice apparently saying the case, won by the complainant, would have been thrown out of court.
Furthermore, as a result of one decision, FICS is presently tied up in legal action brought by one of the parties who is seeking to set aside a panel determination.
Partner with law firm,The Argyle Partnership, Peter Bobbin says FICS decides on matters with reference to good industry practice as well as law, resulting in decisions that would not be available in a court.
“While this may raise professional standards, I can certainly see where it leads to licensee frustration. The bottom line is, it’s a bitch, and nobody is going to like it,” Bobbin says.
Wallace adds the complaint, echoed by others, that even when FICS rules for a dealer group, groups will have spent over $4,000 in fees and preparation merely to defend themselves in a submission, with clients having to pay nothing.
Bobbin says there will always be complainants abusing the system, and believes to stop this a complainant should have to pay a bond that will be lost should the case be thrown out. FICS was unavailable for comment.
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