% of Complaints against IFAs falls - PI for IFAs (claims)

27/05/2009

Written by Neil Pointon

The percentage of complaints being filed against independent financial advisers (IFAs) has fallen over the past 12 months, new figures show.

As the economic crisis rumbles on, the Financial Ombudsman Service (FOS) reveals that a record high of 127,471 grievances were brought to its attention in 2008-09.

However, the proportion of these related to IFAs has fallen from the four per cent seen in 2007-08 to three per cent.

Overall, a total of 5,100 complaints were filed against IFAs.

However, with 30 per cent of these being upheld, such statistics could have a bearing on those Professional Indemnity (PI) insurance of such advisers.

Indeed, Sir Christopher Kelly, chair of the FOS, states: "As businesses tighten their belts and the credit crunch leads to increased financial difficulty for many consumers, we are gearing up to deal with further volatility in complaint volumes."

Overall, complaints about investment-linked products surged to 5,798 last year, while pensions-related grievances fell nine per cent to stand at 4,825.

Robert Bass, claims director at PYV, commented: “In my experience IFAs are becoming more conversant with the tenet of TCF and their records are better than ever before. Thus, when a customer complains the adviser is in a position to assess the situation realistically and either make an offer (with the consent of their PI insurers) or defend it with confidence. Hence, I believe, fewer cases are finding their way to the FOS."

Click here for more information about Professional Indemnity for IFAs.

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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